Special Tea Products (STP) has an exclusive contract with Tea Distributors. Two brands of Teas are imported, Strong and Mild, and sold to retail outlets. The monthly budget for the contract is based on a combination of last year's performance, a forecast of general industry sales, and the company's expected share of the Canadian market for imported Tea. The following information is provided for the month of May:

	Budgeted Strong	BudgetedMild	Actual Strong	Actual Mild
Price per kg	$2.00	$3.00	$2.50	$2.50
Variable cost /kg	1.00	1.50	1.00	2.00
Cont. margin	$1.00	$1.50	$1.50	$0.50
Sales (in kg)	2,000	1,500	1,700	1,800

Budgeted fixed costs are $1,750. Actual fixed costs are $2,000.

What is the STP total

salesmix

variance for contribution margin?

A.

$150 unfavourable

B.

$0

C.

$150 favourable

D.

$300 favourable

E.

$450 favourable