A Machine Distributor Sells Two Models, Basic and Deluxe Actual Sales Were 7,000 Basic Models and 2,800 Deluxe Models

question 58

Multiple Choice

A machine distributor sells two models, basic and deluxe. The following information relates to its master budget.
$$\begin{array} { l c c } & \text { Basic } & \text { Deluxe } \\\text { Sales (units) } & 8,000 & 2,000 \\\text { Sales price per unit } & \$ 8,000 & \$ 12,000 \\\text { Variable costs per unit } & \$ 6,400 & \$ 9,000\end{array}$$
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models.
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What is the sales mix variance for the basic model?

• A) $256,000.
• B) $1,344,000.
• C) $1,600,000.
• D) $2,520,000.

Determine the amount of principal paid off with structured payments over a specified period.

Understand the impact of compound interest on loans and amortization calculations.

Understand the advantages and disadvantages of the corporate form of business organization.

Recognize the role of financial information in decision making and identify characteristics that make it relevant.

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Definitions:

Aphagia

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Lesions

are abnormal changes in tissue structure caused by disease or injury.

Glucostatic Theory

A theory suggesting that the body's regulation of blood glucose levels influences feelings of hunger and satiety, thereby controlling eating behavior.

Dual System

Refers to theories that explain phenomena as the result of two distinct, typically interacting, systems or processes.