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Phoenix Infonautics, Inc., produces handheld Windows CE - compatible organizers. Phoenix Infonautics markets three different handheld models: PalmPro is a souped-up version for the executive
Phoenix Infonautics, Inc., produces handheld Windows CE - compatible organizers. Phoenix Infonautics markets three different handheld models: PalmPro is a souped-up version for the executive on the go, PalmCE is a consumer-oriented version, and PalmKid is a stripped-down version for the young adult market. You are Phoenix Infonautics' senior vice president of marketing. The CEO has discovered that the total contribution margin came in lower than budgeted, and it is your responsibility to explain to him why actual results are different from the budget. Budgeted and actual operating data for the company's third quarter of 2017 are as follows: - X Data Table Data Table Actual Operating Data, Third Quarter 2017 Selling Variable Cost Price per Unit Contribution Margin per Unit Sales Volume in Units PalmPro $ 355 $ 176 $ 179 10,120 Budgeted Operating Data, Third Quarter 2017 Variable Sales Cost per Contribution Volume Selling Price Unit Margin per Unit in Units PalmPro $ 379 $ 182 $ 197 13,580 PalmCE 277 99 178 35,890 Palmkid 147 71 76 47,530 Total 97,000 PalmCE 287 93 194 32,200 49,680 PalmKid 120 73 47 92,000 Total Requirements Print Done 1. Compute the actual and budgeted contribution margins in dollars for each product and in total for the third of 2017 2. Calculate the actual and budgeted sales mixes for the three products for the third quarter of 2017. 3. Calculate total sales-volume, sales-mix, and sales-quantity variances for the third quarter of 2017. (Calculate all variances in terms of contribution margins.) 4. Given that your CEO gets very angry if actual results differ from budget, you want to be well prepared for this meeting. In order to prepare, complete the summary comparing actual results to budgeted amounts. Enter any number in the
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