(Appendix 11A) Kyekyeku Company Retails Two Models of a Product

question 11

Multiple Choice

(Appendix 11A) Kyekyeku Company retails two models of a product: Model X and Model Y. It considers both products to be close substitutes. The following data relate to the company's operations for last year:

-(Appendix 11A) What were the sales quantity variances for Model X and Model Y,respectively,for last year?

• A) $200 favourable and $3,496 favourable.
• B) $240 favourable and $3,680 favourable.
• C) $1,250 favourable and $1,900 favourable.
• D) $1,500 favourable and $2,000 favourable.

---

Definitions:

Probability of Default

An estimate of the likelihood that a borrower will be unable to meet debt obligations as specified in the terms of the loan, typically expressed as a percentage.

Indebtedness

The state of owing money or being obliged to repay a monetary loan.

One-Time Customer

A consumer who purchases goods or services from a business only once.

Variable Cost

Costs that vary directly with the level of production or with the volume of services provided.