2 Volga company produces two types of products V and G.Due to the economic downfall Volga company is struggling to maintain its market share and revenues. Company is getting the services of the experts to set the budgeted selling price, who decides the prices based on the external environment and study of the market. The suggested selling price is considered as a standard selling price in the company. To decide the actual selling price the sales manager negotiates with the actual customers. The following Standard data is available for the year ended 31* December 2019. Product Unit selling price Direct Material/ unit Direct Labour/unit V $20.00 $8 $6 G $30.00 $9 $10 Budgeted sales(units) V=8,000 G= 12.000 Volga Co uses marginal costing system as it is more appropriate for decision making. The actual sales prices and quantity for the product V and G for the year ended 31 December 2019 are as follows: Product Unit selling price V $18.00 G $31.00 Actual sales (units) V=7,500 G=11,000 Using the data provided in the above scenario: a) Calculate sales price variance for Both the products V and G. 6 Marks b) Calculate standard contribution margin (SCM) for Both the products V and G. 6 Marks c) Calculate the total sales mix and sales quantity variance based on the marginal costing principle. 12 Marks Discuss why sales mix and quantity variances are adverse or favorable. 6 Marks