Variance analysis, multiple products. The Split Banana, Inc., operates a chain of Italian gelato stores. Although the Split Banana charges customers the same price for all flavors, production costs vary, depending on the type of ingredients. Budgeted and actual operating data of its three Washington, DC, stores for August 2011 are as follows:

Budget for August 2011

Actual for August 2011

The Split Banana focuses on contribution margin in its variance analysis.Required1. Compute the total sales-volume variance for August 2011.2. Compute the total sales-mix variance for August 2011.3. Compute the total sales-quantity variance for August 2011.4. Comment on your results in requirements 1, 2, and3.

Contribution Margin per Pints Sales Volume in Pints Selling Price per Pint Variable Cost per Pint Mint chocolate chip $9.00 9.00 $4.80 3.20 5.00 5.40 3.90 $4.20 5.80 4.00 3.60 5.10 25,000 35,000 5,000 15,000 Vanilla Rum Raisin Peach Coffee 9.00 9.00 9.00 20,000 100,000