Consider the static budget column (Column 3):Static budget total contribution margin$15,525Budgeted units of all glasses to be sold2,300Budgeted contribution margin per unit of Plain$5Budgeted contribution margin per unit of Chic$12Suppose that the budgeted sales-mix percentage of Plain isy. Then the budgeted sales-mixpercentage of Chic is (1 –y).Therefore,(2,300y × $5) + (2,300 × (1 –y) × $12)=$15,525$11,500y+ $27,600 – $27,600y=$15,525$16,100y=$12,075y=0.75 or 75%1 –y=25%Hiro’s budgeted sales mix is 75% of Plain and 25% of Chic. We can then fill in all the numbersin Column 3.Step 2Next, consider Column 2 of Solution Exhibit 14-26.The total of Column 2 in Panel C is $12,825 (the static budget total contribution margin of$15,525 – the total sales-quantity variance of $2,700 U which was given in the problem).We need to find the actual units sold of all glasses, which we denote byq. From Column 2, weknow that(q× 0.75 × $5) + (q× 0.25 × $12)=$12,825$3.75q+ $3q=$12,825$6.75q=$12,825q=1,900 unitsSo, the total quantity of all glasses sold is 1,900 units. This computation allows us to fill in all thenumbers in Column 2.Step 314-25