Tammy and Jackie met while students studying for a degree in nutrition. In 2018 they started a business making and selling healthy snacks based on the concepts they learned in completing their degrees. During budgeting for 2018 they forecast a sales volume of 1,000 cases of snacks at a price of $16.00 per case. Actual results for 2018 were 1,200 cases at an average price of $15.75 per case.

Important: For all variance questions, please make sure to indicate if it is favorable or unfavorable.

1. What is the sales price variance for 2018? 2. what is the sales volume variance for 2018?

Lets fast forward to 2021. The previous year Tammy and Jackie started making a second type of healthy snack that is based on only using organic ingredients. Now that they in are in their second year with two products they want to analyze contribution margin. To accomplish this type of analysis they gathered the following budgeted and actual information for 2021:

Regular Organic Total Budgeted Volume 2,000 500 2,500 Budgeted Cm per unit $9.00 $12.00 ? Budgeted Total CM $18,000 $6,000 $24,000

Regular Organic Total Actual Volume 1,750 750 2,500 Actual CM per unit $9.00 $12.00 ? Actual Total CM $15,750 $9,000 $24,750

3. What is the Budgeted Average Contribution Margin per unit? 4. What is the Total Contribution Margin Variance? 5. How much of the Total Contribution Margin can be explained by the Contribution Margin Volume Variance? 6. Was there a mix effect Yes, or No? 7. In 25 words or less, how did you determine the answer the previous question about the mix effect?