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Creepers, Inc What Is the Sales Mix Variance for Spiders?
A) $1,125

question 106

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Creepers, Inc., manufactures stuffed spiders and mummies. During September the following information was gathered:  Spiders  Mummies  Units sold 6,9003,100 Budgeted sales (units)  7,5002,500 Contribution margin per unit:  Actual $3.75$5.75 Budgeted $2.75$5.25\begin{array}{lrrr}&\text { Spiders } & \text { Mummies } \\\text { Units sold } & 6,900 & 3,100 \\\text { Budgeted sales (units) } & 7,500 & 2,500 \\\text { Contribution margin per unit: } & & \\\text { Actual } & \$ 3.75 & \$ 5.75 \\\text { Budgeted } & \$ 2.75 & \$ 5.25\end{array} What is the sales mix variance for Spiders?

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Definitions:

Comparative Advantage

A person's, corporation's, or country's capability to manufacture a good or provide a service with a smaller opportunity cost than that of its competitors.

Absolute Advantage

The ability of a party to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources.

Banana Production

The cultivation, harvesting, and processing of bananas, typically for consumption as food or for use in various products.

Comparative Advantage

The ability of an individual or firm to produce a good or service at a lower opportunity cost than other producers.

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