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

question 53

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.
-
Is the sales mix variance for the basic model favorable or unfavorable?

• A) Favorable.
• B) Unfavorable.

---

Definitions:

Regressive

Term describing resistance to particular social changes, efforts to maintain the status quo, or attempts to reestablish an earlier form of social order.

Technological Determinism

The theory that society's technology drives the development of its social structures and cultural values.

Steam Engine

A heat engine that performs mechanical work using steam as its working fluid, playing a crucial role in the Industrial Revolution by powering factories, trains, and ships.

Regressive Social Movements

Movements aiming to reverse social progress or return to previous societal conditions.