Aussie Infonautics Inc. produces handheld Windows CE€“compatible organizers. Aussie Infonautics markets three different handheld models. PalmPro is a souped-up 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 of 2013 are as follows:

REQUIRED
1. Compute the actual and budgeted contribution margins in dollars for each product and in total for the third quarter of 2013.
2. Calculate the actual and budgeted sales mixes for the three products for the third quarter of 2013.
3. Calculate total sales-volume, sales-mix, and sales-quantity variances for the third quarter of 2013. (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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Variable Cost per Unit $182 98 65 Contribution Margin per Unit $197 Sales Volume in Units PalmPro PalmCE PalmKid Selling Price $379 269 149 12,500 37,500 50,000 100,000 3 84 Variable Cost per Unit $178 92 73 Contribution Margin per Unit S171 193 29 Sales Volume Selling Price $349 285 102 11,000 44,000 55,000 110,000 PalmPro PalmCE PalmKid