The new sales manager believed that he could have talked a major customer of Mint Chill into accepting a smaller discount resulting in the overall actual price/block for Mint Chill increasing by 50 cents. There would be no effect on sales volume. i. What would be the effect on the selling price variance for Mint Chill if the actual results shown above were changed due to the sales managers work with the major customer? ii. What would be the effect on the sales mix variance for Mint Chill if the actual results shown above were changed due to the sales managers work with the major customer?

BCF forecasts a 25% market share of total 1kg blocks of chocolate sold in Otago in December 2019 in Springfield. Reliable industry sources indicate that the total number of 1kg blocks of chocolate sold for December 2019 in Otago was 12.5% higher than budgeted. Exhibit 1 Budgeted and actual data for December 2019 Budgeted Data Actual Data Mint Rich Dark Chill Cranberry Vintage Mint Chill Cranberry Vintage Rich Dark 1kg Blocks 7,200 4,800 4,000 10,800 3,600 7,200 Contribution Margin $18,000 $19,200 $20,000 $21,600 $10,800 $54,000