I need to find the CM Sales Mix Variance and CM Sales quanti

I need to find the CM Sales Mix Variance and CM Sales quantity variance for this, but have no idea where to start..

The answers are CM Sales Mix Variance: 9150F and CM Sales Quantity Variance:156,750F

Paris Perfumery sells two perfumes, L\'Amor and Plaisir. The expected sales mix is one bottle of LAmour to five bottles of Plaisir. Planned sales and variable costs for last period were as follows Plaisir Total Sales Variable costs Contribution Margin (10,000 ynit $600,000 (50,000 units) $400,000 $1,000,000 230,000 430.000 $400.000 $170,000 $ 570 During the period there was an economic downturn. Sales of L Amour dropped off, so Paris reduced its price Actual sales were as follows Total $625,500 318,000 Plaisir Sales Variable costs Contribution Margin L:Amoup (7,500 @ $45) $337,500 165.000 $172,500 (36,000 @ $8) $288,000 153.000 S135.000 $307500

Sales Mix Variance (where standard costing is used):

= (Actual Unit Sold - Unit Sales at Standard Mix) x Standard Profit Per Unit

Sales Mix Variance (where marginal costing is used):

= (Actual Unit Sold - Unit Sales at Standard Mix) x Standard Contribution Per Unit

Here we will use the second formula.

Calculation of sales mix variance:

Step 1) Calculate the standard mix ratio.

Standard Mix:

L\'Amour = 10000 / (10000 + 50000) = 16.67%

Plaisir = 50000/(10000 + 50000) = 83.33%

Step 2: Calculate the sales quantities in proportion to the standard mix -

Total sales = 7500+ 36000 = 43500 units

Unit Sales at Standard Mix:

Sales of L\'Amou in standard mix @ 16.67% of 43500 = 7251units

Sales of Plaisir in standard mix @ 83.33% of 43500 = 36249 units

Step 3: Calculate the difference between actual sales quantities and the sales quantities in standard mix -

Step 4: Calculate the standard contribution per unit -

L\'amour = $400000 / 10000 units = $40 per unit

Plaisir = $170000 / 50000 = $3.40 / unit

Step 5: Calculate the variance for each product

Step 6: Add the individual variances

Sales Mix variance = 9960 Favourable + 846.60 Adverse = 9960 - 846.60= $9113.40 Favourable

Note: the difference in answer is because of rounding off

Sales Quantity Variance may be calculated as follows:

Sales Quantity Variance:

= (Budgeted sales - Unit Sales at Standard Mix) x Standard Contribution*

*Where marginal costing is used

Sales Quantity Variance:

= (Budgeted sales - Unit Sales at Standard Mix) x Standard Profit*

*Where absorption costing is used

We will use the First formula