Lambeth, Inc. produces the basic fillings used in many popular frozen desserts and treats-vanilla and chocolate ice creams, puddings, meringues, and fudge. Lambeth uses standard costing and carries over no inventory from one month to the next. The ice-cream product group's results for June 2017 were as follows: Performance Report, June 2017 Actual Static Results Budget 560,000 Units (pounds) 546,000 Revenues $ 2,928,800 $ 2,893,800 Variable manufacturing costs 1,831,200 1,747,200 1,097,600 $ 1,146,600 Contribution margin Jorge Braun, the business manager for ice-cream products, is pleased that more pounds of ice cream were sold than budgeted and that revenues were up. Unfortunately, variable manufacturing costs went up, too. The bottom line is that contribution margin declined by $49,000, which is less than 2% of the budgeted revenues of $2,893,800. Overall, Braun feels that the business is running fine. 1. Calculate the static-budget variance in units, revenues, variable manufacturing costs, and contribution margin. What percentage is each static-budget variance relative to its static-budget amount? 2. Break down each static-budget variance into a flexible-budget variance and a sales-volume variance. 3. Calculate the selling price variance. Assume the role of management accountant at Lambeth. How would you present the results to Jorge Braun? Should he be more concerned? If so, why?