Inserting Serbian Latin and Cyrillic characters

Question

I am using SQL Server 2012 Express as part of my asp.net development workstation. Database and table collation is set to Latin1_General_CI_AI. Attribute types are nvarchar(max) and varchar(max).

When I pass a string containing Serbian Latin characters žđšćč žđćčžđšćčŽĐŠĆČ, the model from my asp.net application passes the string as it is, but the database is not accepting it, writing ždšcc ždccždšccŽÐŠCC into the table instead.

I also tried with Cyrillic string, but ????? ????? is written into database.

I am using MVC5 and EF6. I don't have parameters or datareader. I am just passing the model into the framework, and EF is doing everything else.