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Diamond-P Services sells three types of pet-care services, Dog Walking, Grooming and Cat Herding. The budgeted and actual sales and contribution margins for the
Diamond-P Services sells three types of pet-care services, Dog Walking, Grooming and Cat Herding. The budgeted and actual sales and contribution margins for the month are as follows: Product Budget Budget Budget Sales $/unit VC/Unit CM/Unit Budget Units sold Dog Walking $25 $15 $10 600 Grooming $40 $25 $15 150 Cat Herding $100 $30 $70 60 Product Actual Actual Actual Actual Sales $/unit VC/Unit CM/Unit Units sold Dog Walking $22 $15 $7 650 Grooming $35 $30 $5 300 Cat Herding $95 $50 $45 65 Product Actual Actual Actual Actual Sales $/unit VC/Unit CM/Unit Units sold Dog Walking $22 $15 $7 650 Grooming $35 $30 $5 300 Cat Herding $95 $50 $45 65 (10 marks) Management wonders if their marketing attempts have shifted pet owners to the more profitable products, especially the lucrative Cat Herding. Calculate the Sales Mix and Sales Quantity Variance for each product. Comment as to their success.
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