Aussie Infonautics, Inc., produces handheld Windows CE„¢-compatible organizers. Aussie Infonautics markets three different handheld models. PalmPro is a soupedup version for the executive on the go; PalmCE is a consumer-oriented version; and PalmKid is a stripped-down version for the young adult market. You are Aussie Infonautics' senior vice president of marketing. The CEO has discovered that the total contribution margin came in lower than budgeted, and it is your responsibility to explain to him why actual results are different from the budget. Budgeted and actual operating data for the company's third quarter (2007) are as follows:
Budgeted Operating Data, Third Quarter 2007

Actual Operating Data, Third Quarter 2007

1. Compute the actual and budgeted contribution margins in dollars for each product and in total for the third quarter of 2007.
2. Calculate the actual and budgeted sales mixes for the three products for the third quarter of 2007.
3. Calculate total sales-volume, sales-mix, and sales-quantity variances for the third quarter of 2007. (Calculate all variances in terms of contribution margins.)
4. Given that your CEO is known to have temper tantrums, you want to be well prepared for this meeting. In order to prepare, write a paragraph or two comparing actual results to budgeted amounts?

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Selling Variable Cost Contribution Margin per Unit $197 84 Sales Volume in Units Price per Unit PalmPro PalmCE PalmKid $379 269 149 $182 98 65 12,500 37,500 50,000 100,000 Selling Price Variable Cost per Unit Contribution Margin per Unit Sales Volume in Units PalmPro PalmCE PalmKid $349 285 102 11,000 4,000 55,000 110,000 92 73 193 29