Electra Corp. produces two products: A and B$.$ Information on these two products is as

follows:

A B

Budget price per unit $$130$ $$145$

Budget variable costs per unit $ $60$ $ $67$

Sales volume in units:

Actual $15,0006,500$

Budget $10,0807,420$

Required:

Calculate and explain the following variances for Electra:

a$)$ Sales volume variance $($in contribution margin$)$

b$)$ Sales mix variance $($in contribution margin$)$

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