Blank Slate Inc. (BSI) produces tablet computers. BSI markets three different handheld models….

Blank Slate Inc. (BSI) produces tablet computers. BSI markets three different handheld models. SlatePro is a souped-up version for the executive on the go; Slate is a consumer-oriented version; and SlateLite is a stripped down version for the young adult market. You are BSI’s senior vice-president of marketing. The CEO has discovered that the total contribution margin came in lower than budgeted, and it is your responsibility to explain to him why results are different from the budget. Budgeted and actual operating data for the company’s third quarter of 2015 are as follows:

Required

1. Compute the actual and budgeted contribution margins in dollars for each product and in total for the third quarter of 2015.

2. Calculate the actual and budgeted sales mixes for the three products for the third quarter of 2015.

3. Calculate total sales-volume, sales-mix, and sales-quantity variances for the third quarter of 2015. (Calculate all variances in terms of contribution margins.)

4. Given that your CEO is known to have temper tantrums, you want to be well prepared for this meeting. In order to prepare, write a paragraph or two comparing actual results to budgeted amounts.

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