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?

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