Reference no: EM133230964

The Octova Corporation manufactures two types of vacuum cleaners: the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 2017 are as follows:

Static Budget                                Zenith            House-Helper                              Total

Number sold                                  20,000                            80,000                         100,000

Contribution margin           $4,600,000                  $15,200,000                 $19,800,000

Actual Results                             Zenith            House-Helper                              Total

Number sold                                  21,500                            64,500                           86,000

Contribution margin           $6,665,000                  $14,190,000                 $20,855,000

Required:

a. Compute the sales-mix variance by product and in total (in terms of the contribution margin).

b. Compute sales-quantity variance by product and in total (in terms of the contribution margin).