Nanerty Inc.produces two types of backpacks: basic and deluxe.The basic backpack sells for $25 and the deluxe sells for $100.Nanerty is budgeting sales of 1,000 basic backpacks and 650 deluxe.Variable costs associated with the basic backpack amount to $10 and $40 for the deluxe.Actual units sold were 1,200 basic and 550 deluxe.
a.Calculate the contribution margin variance.
b.Calculate the sales mix variance.

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The Answer of Nanerty Inc.produces two types of backpacks: basic and deluxe.The basic backpack sells for $25 and the deluxe sells for $100.Nanerty is budgeting sales of 1,000 basic backpacks and 650 deluxe.Variable costs associated with the basic backpack amount to $10 and $40 for the deluxe.Actual units sold were 1,200 basic and 550 deluxe.
a.Calculate the contribution margin variance.
b.Calculate the sales mix variance.