Beta Division of Gotham Industries, Inc. makes three products. Last month's budgeted and actual sales and margins for these products were as follows:
Budget Actual
Unit Unit Unit Unit
Sales Margin Sales Margin
Product 1 3,200 $10.00 2,850 $10.20
Product 2 1,700 $13.00 2,500 $12.58
Product 3 5,100 $ 9.00 4,250 $ 8.80
10,000 $10.00 9,600 $10.20
Determine the gross margin mix, selling price, and sales volume variances. Calculate the net gross margin variance directly; then as a check see if it equals the sum of the three variance components you calculated individually.