The TV Corporation manufactures 2 types of TVs. The Basic TV and the Deluxe TV. Budgeted and actual annual operating data are as follows:

Static Budget	Basic	Deluxe	Total
Number units Sold	60,000	40,000	100,000
Total Contribution Margin	$10,500,000	$3,400,000	$13,900,000
Budgeted CM per unit	$175.00	$85.00
Actual Results
Number units sold	59,850	45,150	105,000
Total Contribution Margin	$10,713,150	$3,612,000	$14,325,150

Actual industry volume was 319,000 units

Prior to the beginning of the year, a consulting firm estimated the total volume for volume of the Basic and Deluxe industry category to be 318,000 units

a. Calculate the Static-budget variance.

b. Calculate the contribution margin for the flexible budget.

c. Calculate the flexible budget variance.

d. Calculate the sales-volume variance.

e. Compute the actual sales-mix (look at the calculations on page 572-for actual sales mix of wholesale channel 100,000/150,000=66.67%)

f. Compute the budgeted sales-mix (look at the calculations on page 570 - for budgeted wholesale channel 93,000/155,000=60%)

g . Compute the sales-mix variance for each product and then the total sales-mix variance like the table shown on page 572. I have set up the table for you to fill in.

h. Compute the sales-quantity variance by type of machine and total (review pages 572-573--all products will either be a F or U-- you cannot have both

if total actual quantity is greater than total budgeted units the sales-quantity will always be F and the opposite will occur when actual is less than budgeted).

i. Compute the market-share variance

j. Compute the market-size variance.

k. Comment on the results of the above variance analysis. Make sure your comments identify specific variances and the impact of these variances on income.