Variance analysis, multiple products. Soda-King manufactures and sells three soft drinks: Kola, Limor, and Orlem. Budgeted and

Question:

Variance analysis, multiple products. Soda-King manufactures and sells three soft drinks: Kola, Limor, and Orlem. Budgeted and actual results for 2011 are as follows:

Required1. 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 requirement1?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...