Winston Co $\text { On September 1, the following actual operating results for August were reported: }$

question 119

Multiple Choice

Winston Co. had two products code named X and Y. The firm had the following budget for August: $\begin{array}{lrrr} & \text { Product X } & \text { Product Y } & \text { Total } \\\text { Sales } & \$ 286,000 & \$ 520,000 & \$ 806,000 \\\text { Variable Costs } & 189,800 & 218,400 & 408,200\\\text { Contribution Margin } & \$ 96,200 & \$ 301,600 & \$ 397,800 \\\text { Fixed costs } & 50,000 & 108,000 & 158,000\\\text { Operating Income }&\$46,200&\$193,600&\$239,800\\\text { Selling Price per unit }&\$110.00&\$50.00\end{array}$

$\text { On September 1, the following actual operating results for August were reported: }$

$\begin{array}{lrrr} & \text { Product X } & \text { Product Y } & \text { Total } \\\text { Sales } & \$ 360,000 & \$ 540,000 & \$ 900,000 \\\text { Variable Costs } & 195,000 & 216,000 & 411,000\\\text { Contribution Margin } & \$ 165,000 & \$ 324,000 & \$ 489,000 \\\text { Fixed costs } & 50,000 & 108,000 & 158,000 \\\text { Operating Income }&\$115,00&\$216,000&\$331,000\\\text { Units Sold }&3,000&9,000\end{array}$ Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units.

The sales mix variance for Product Y is:

• A) $14,400 favorable.
• B) $16,250 favorable.
• C) $17,400 unfavorable.
• D) $18,750 favorable.
• E) $33,250 unfavorable.

---

Definitions:

Reduction Of Edema

The process of decreasing swelling in the body's tissues by removing excess fluid.

Potassium Intake

The amount of potassium consumed through diet, essential for proper cell function and heart health.

Acute Glomerulonephritis

A rapid onset inflammatory condition affecting the glomeruli, the filtering units of the kidneys, which can lead to decreased kidney function.