Question 2 SALES VARIANCES (12 MARKS) The management accountant at Cosmetics International is reviewing the company's performance for the last quarter. Budget and actual sales data for the last quarter for its skin products are displayed in Exhibit 3. Exhibit 3 Cosmetics International Budgeted and Actual Data for the last quarter Products Moisturiser Face Cream Actual Actual Budget 280,000 Budget 120,000 260,000 140,000 Anti-Ageing Cream Budget Actual Sales (units) 240,000 250,000 Sales 70.00 69.00 price($)/unit Variable 36.00 35.80 costs($)/unit 37.50 35.00 43.00 44.00 17.50 14.40 21.00 23.80 Required: (a) Calculate the sales mix variances, sales quantity variances and sales volume variances for all three products and in total, based on contribution margin. (8 marks) (b) Explain the meaning of the sales mix variance and why its calculation provides useful information for the company. Use the figures calculated in part (a) to illustrate your answer. (4 marks)