Sales Variances; Quarter to Quarter Hathaway Products Inc. produces an innovative lighting system used in restaurants and high-end retail stores to provide a pleasing, warm atmosphere. Hathaway...

Sales Variances; Quarter to Quarter Hathaway Products Inc. produces an innovative lighting system used in restaurants and high-end retail stores to provide a pleasing, warm atmosphere. Hathaway produces two versions of the product, called Starlight and Moonlight. Sales management at Hathaway wants to complete a sales performance analysis and has collected the following information for the first quarter (Qtr. 1) and the second quarter (Qtr. 2) of the current fiscal year:

Required

1. Prepare a flexible-budget contribution income statement for Qtr. 2, showing the Qtr. 2 results, the Qtr. 1 results, and the flexible budget. Use Exhibit 16.15 as a guide. 2. Calculate the sales volume variance  for each product based both on sales dollars and contribution margin. 3. Determine the sales mix variance, and the sales quantity variance for each product, based on contribution margin