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Haysbert Company provides management services for apartments and rental units. In general, Haysbert packages its services into two groups: basic and complete. The basic package includes advertising vacant units, showing potential renters through them, and collecting monthly rent and remitting it to the owner. The complete package adds maintenance of units and bookkeeping to the basic package. Packages are priced on a per-rental unit basis. Actual results from last year are as follows: Basic Complete Sales (rental units).......................2,000.....................400 Selling price...............................$140....................$300 Variable expenses..........................$85....................$240 Haysbert had budgeted the following amounts: Basic Complete Sales (units)......................1,950...................460 Selling price.......................$145..................$290 Variable expenses..................$90..................$242 Required: 1. Calculate the contribution margin variance. 2. Calculate the contribution margin volume variance. 3. Calculate the sales mix variance.
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