Robinson Company has two products, A and B. Robinsons budget for August follows: Master budget Product A

Robinson Company has two products, A and B. Robinson’s budget for August follows:

Master budget	Product A	Product B	Total
Sales	$240,000	$300,000	$540,000
Variable costs	140,000	180,000	320,000
Contribution margin	$100,000	$120,000	$220,000
Fixed costs	80,000	40,000	120,000
Operating income	$20,000	$80,000	$100,000
Selling price per unit	$120	$50

On September l, these operating results for August were reported:

Operating results	Product A	Product B	Total
Sales	$180,400	$341,120	$521,520
Variable costs	106,600	216,480	323,080
Contribution margin	$73,800	$124,640	$198,440
Fixed costs	80,000	40,000	120,000
Operating income	($6,200)	$84,640	$78,440
Units Sold	1,640	6,560

Required

1. For each product determine the following variances measured in Contribution margin:

a. Flexible budget variance.

b. Sales volume variance.

c. Sales quantity variance.

d. Sales mix variance.

2. Explain the flexible budget variance using selling price and variable costvariances.