Space Infonautics, Inc., produces handheld Windows CETM-compatible organizers. Space Infonautics markets three different handheld models: MobilePro...

Transcribed Image Text:

Space Infonautics, Inc., produces handheld Windows CETM-compatible organizers. Space Infonautics markets three different handheld models: MobilePro is a souped-up version for the executive on the go, MobileCE is a consumer-oriented version, and MobileKid is a stripped-down version for the young adult market. You are Space 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 bud- get. Budgeted and actual operating data for the company's third quarter of 2020 are as follows: Budgeted Operating Data, Third Quarter 2020 Variable Cost Contribution Sales Volume in Units Selling Price $380 per Unit $185 Margin per Unit MobilePro $195 5,550 MobileCE 274 97 177 44,400 MobileKid 146 65 81 61,050 111,000 Actual Operating Data, Third Quarter 2020 Variable Cost Contribution Sales Volume Selling Price per Unit Margin per Unit in Units MobilePro $351 $180 $171 4,600 MobileCE 284 92 192 49,450 Mobilekid 115 73 42 60,950 115,000 1. Compute the budgeted and actual average contribution margins in dollars for each product and in total for the third quarter of 2020. 2. Calculate the actual and budgeted sales mixes for the three products for the third quarter of 2020. 3. Calculate total sales-volume, sales-mix, and sales-quantity variances for the third quarter of 2020. (Calculate all variances in terms of contribution margins.) Space Infonautics, Inc., produces handheld Windows CETM-compatible organizers. Space Infonautics markets three different handheld models: MobilePro is a souped-up version for the executive on the go, MobileCE is a consumer-oriented version, and MobileKid is a stripped-down version for the young adult market. You are Space 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 bud- get. Budgeted and actual operating data for the company's third quarter of 2020 are as follows: Budgeted Operating Data, Third Quarter 2020 Variable Cost Contribution Sales Volume in Units Selling Price $380 per Unit $185 Margin per Unit MobilePro $195 5,550 MobileCE 274 97 177 44,400 MobileKid 146 65 81 61,050 111,000 Actual Operating Data, Third Quarter 2020 Variable Cost Contribution Sales Volume Selling Price per Unit Margin per Unit in Units MobilePro $351 $180 $171 4,600 MobileCE 284 92 192 49,450 Mobilekid 115 73 42 60,950 115,000 1. Compute the budgeted and actual average contribution margins in dollars for each product and in total for the third quarter of 2020. 2. Calculate the actual and budgeted sales mixes for the three products for the third quarter of 2020. 3. Calculate total sales-volume, sales-mix, and sales-quantity variances for the third quarter of 2020. (Calculate all variances in terms of contribution margins.)

Answer rating: 100% (QA)

Part1 Actual Products Contribution per unit Units Contribution Mobile pro 171 4600 786600 Mobile CE ... View the full answer