The Robins Basket operates a chain of Italian gelato stores. Although the Robins Basket charges customers the

The Robin’s Basket operates a chain of Italian gelato stores. Although the Robin’s Basket charges customers the same price for all flavors, production costs vary, depending on the type of ingredients. Budgeted and actual operating data of its Washington, D. C., store for August 2014 are as follows:

The Robin’s Basket focuses on contribution margin in its variance analysis.

Required
1. Compute the total sales-volume variance for August 2014.
2. Compute the total sales-mix variance for August 2014.
3. Compute the total sales-quantity variance for August 2014.
4. Comment on your results in requirements 1, 2, and3.

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Budget for August 2014 Selling Price per Pint $9.00 9.00 9.00 Variable Cost per Pint $4.80 3.20 5.00 Contribution Margin per Pints $4.20 5.80 4.00 Sales Volume in Pints 35,000 5,000 20,000 100,000 Mint chocolate chip Vanilla Rum raisin Actual for August 2014 Selling Price per Pint $9.00 9.00 9.00 Variable Cost per Pound $4.60 3.25 5.15 Contribution Margin per Pound S440 5.75 3.85 Sales Volume in Pounds 33,750 56,250 22,500 112,500 Mint chocolate chip Vanilla Rum raisin