Pears Inc. manufactures various type of cell phones with different capacities: Cell-Pro, Cell-Individual and Cell-Kids. Recently, the CEO has discovered that the actual contribution margins were smaller than the budgeted figures for the previous month. Your responsibility is to explain why actual results were different from the budget based on the data given below:

Actual operating results for September	Selling Price	Sales Volume	Unit variable cost
Cell-Pro	351	4600	171
Cell individual	284	49 450	192
Cell-kids	115	60 950	42
Budget operating results for September
Cell Pro	389	5550	195
Cell individual	274	44 400	177
Cell -Kids	146	61 050	81

1. Compute the actual and budgeted contribution margins (in dollars) for each product and in total for the month of September
2. Calculate the actual and budgeted sales mixes for each product.
3. Calculate total sales-volume, sales-mix, and sales quantity variances in terms of contribution margins
4. Explain the difference between actual and budgeted amounts.

Answer rating: 100% (QA)

a Calculation of actual and budgeted contribution margins in dollars for each product and in total for the month of September Contribution per unit Selling price per unit Variable cost per unit Total ... View the full answer