Chapter 14, Problem 14.26E

Variance analysis, working backward. The Hiro Corporation sells two brands of wine glasses: Plain and Chic. Hiro provides the following information for sales in the month of June 2017:

Static-budget total contribution margin	$15,525
Budgeted units to be sold of all glasses	2,300 units
Budgeted contribution margin per unit of Plain	$5 per unit
Budgeted contribution margin per unit of Chic	$12 per unit
Total sales-quantity variance	$2,700 U
Actual sales-mix percentage of Plain	60%

All variances are computed in contribution-margin terms.

1. 1. Calculate the sales-quantity variances for each product for June 2017.

Required

1. 2. Calculate the individual-product and total sales-mix variances for June 2017. Calculate the individual-product and total sales-volume variances for June 2017.
2. 3. Briefly describe the conclusions you can draw from the variances.