Variance analysis, multiple products Soda-King manufactures and sells three soft drinks: Kola Limor, and Orlem. Budgeted and actual results for 2009 are as follows:

1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations.

2. What inferences can you draw from the variances computed in requirement1?

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Budget for 2009 Variable Cost per Carton Actual for 2009 Variable Cost Product Kola Limor Selling Price Cartons Sold Selling Price per Carton 400,000 Cartons Sold 480,000 900,000 1,620,000 $6.20 $4.25 $4.50 S2.75 S4.60 $6.00 S4.00 $2.80 $4.00 600,000 1,500,000 $4.50 Orlem $7.00 $6.80