Tile Floors produces a variety of tiles used for kitchen flooring. Two of Tile Floors lines are particularly popular with local home builders. The standard grade is a 6-inch (15 cm) square, high-glass tile. The high grade is an 8-inch (20 cm) square tile with a rough sandstone finish. When the housing market gets tight, home builders use more of the standard grade to keep the overall cost of the house lower. The following information is available for sales during the last six-month period.

Required: 

A. Calculate the contribution margin sales volume variance.

B. Calculate the contribution margin sales mix variance.

C. Calculate the contribution margin sales quantity variance.

D. Explain what has happened in these 2 product lines in the last 6 months.

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Standard Contribution Margin $ 9.60 Actual Contribution Margin Standard Price Standard Volume Actual Price Actual Volume 6-inch $24/case 250,000 $22/case $ 6.00 225,000 8-inch 50,000 $25.00 $60/case $30.00 $55/case 65,000