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Special Tea Products (STP) has an exclusive contract with Tea Distributors. Two brands of Teas are mported. Strong and Mid and sold to retail outlets.

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Special Tea Products (STP) has an exclusive contract with Tea Distributors. Two brands of Teas are mported. Strong and Mid and sold to retail outlets. The monthly budget for the contrast bed on content 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 Budged Budget Strong Actual Sarong Actu Price per la Variable costo Cont, margin 52.00 1.00 5100 $2.50 33.00 1.50 $1.50 1.00 11.50 2.00 3050 Bangi Budgleded costs are $1,750. Actualed costs are $2,000 2.000 1,500 1.700 1300 OA $2,250 O 051 350 F OC 51.350 OD 5000 U O E 52.250 F auto general industry sales, and the company's expected share of the Canadian market for imported Tea. The following information is provided for the Budgeted Strong Budgeted Mild Actual Price per kg Variable cost/kg Cont. margin $2.00 1.00 $1.00 $3.00 1.50 $1.50 Sales (in kg) Budgeted fixed costs are $1,750. Actual fixed costs are $2,000. 2,000 1,500 What is the static budget variance (contribution margin) for Mild Tea? O A $2,250 U OB. $1,350 F OC. $1,350 U D. $900 U OE $2,250 F

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