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In: Accounting

Kool King manufactures and sells soft drinks in three countries – Canada, Mexico, and the United...

Kool King manufactures and sells soft drinks in three countries – Canada, Mexico, and the United States. The same product is sold in each market. Budgeted and actual results for 2010 (all in Canadian dollars) are as follows: Budget for 2010

Actual for 2010

Country

Selling Price per Carton

Variable Cost per Carton

Units Sold (Cartons in Thousands)

Selling Price Per Carton

Variable Cost per Carton

Units Sold (Cartons in Thousands)

Canada

$6.60

$4.00

400,000

$6.82

$4.50

450,000

Mexico

$4.40

$2.80

600,000

$4.68

$2.75

840,000

United States

1) Compute Sales Volume Variance and Sales Quantity Variance Using Contribution Margin. Show all Calculations and Results for each Country!!

$7.70

$4.50

1,500,000

$7.48

$4.60

1,710,000

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