Soda-King manufactures and sells two soft drinks: Kola and Limor. Budgeted and actual results for 2014 are as follows:

1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations.

2. What inferences can you draw from the variances computed in requirement 1? 

Budget for 2014 Actual for 2014 Selling Price Variable Cost Cartons Selling Variable Cost Cartons per Carton $5.75 Product per Carton Sold Price Sold Kola S10.00 $5.50 500,000 $10.10 504,300 Limor $ 7.50 $4.00 750,000 $ 7.75 $3.70 725,700