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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.

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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 Budgeted Actual Actual Strong Mild Strong 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 sales-volume variance (contribution margin) for May? $300 U $150U $150F $750U

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