The Pop Shoppe manufactures and sells three soft drinks: Kola, Lima, and Oranga. Budgeted and actual results for 2018 are as follows: (Click the icon to view the budgeted data.) E (Click the icon to view the actual data.) Required 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. 2. What inferences can you draw from the variances computed in requirement 1? Budgeted data Budget for 2018 Selling Variable Cost Cases Price per Case Sold Kola $ 6.90 $ 4.10 400,000 Lima $ 5.00 $ 3.60 620,000 Oranga $ 7.70 $ 5.10 1,900,000 Actual data Actual for 2018 Selling Cases Variable Cost per Case Price Sold Kola $ 7.10 $ 4.60 570,000 Lima $ 5.25 $ 3.55 900,000 Oranga $ 7.50 $ 5.20 1,700,000 Requirement 1. Compute the total sales volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. Begin by computing the actual contribution margins (CM). Then compute the budgeted contribution margins in dollars for each product and in total for the third quarter of 2018. Kola Actual CM Budgeted CM $ 1,425,000 $ 1,120,000 1,530,000 868,000 Lima 3.910.000 4,940,000 Oranga $ 6,865,000 $ 6.928,000 Total Calculate total sales-volume, sales-mix, and sales-quantity variances for the third quarter of 2018. (Calculate all variances in terms of contribution margins.) Let's first determine the formula for the sales-volume variance, and then calculate the variance for each product for the third quarter of 2018. Label each variance as favourable (F) or unfavourable (U). Sales-volume Budgeted CM per unit variance Actual qty. of units sold 570,000 Budgeted qty of units sold ) 400,000 ) x $ Kola ( 2.8 $ 476,000 F Lima ( 900,000 620,000 ) x $ 1.4 $ 392,000 F Oranga ( 1,700,000 1,900,000 ) x $ 2.6 = $ 520,000 U The total sales-volume variance is $ 348000 F Next determine the formula for the sales-quantity variance, and then calculate the variance for each product for the third quarter of 2018. (Calculate all variances in terms of contribution margins.) Label each variance as favourable (F) or unfavourable (U). (Enter percentages rounded to one decimal place, "X.X%".) Sales-quantity Actual Budgeted quantity of units sold - quantity of units sold ) Budgeted sales-mix Budgeted CM per unit % x variance