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

question 6

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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Is the sales mix variance for the deluxe model favorable or unfavorable?

• A) Favorable.
• B) Unfavorable.

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Definitions:

Institutional Action

Actions taken by established institutions aimed at achieving specific goals or enforcing policies.

Jim Crow Era

A period in American history marked by racial segregation and discriminatory laws against African Americans.

Legal and Institutional Change

Modifications made within laws and organizational structures aimed at reforming or improving systems for better societal outcomes.

William Julius Wilson

An influential American sociologist known for his research and writing on race, class, and inequality in the United States.