Kyekyeku Company Retails Two Models of a Product: Model X

question 35

Multiple Choice

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: $\begin{array} { | l | r | r | r | } \hline & \text { Model X } & \text { Model Y } & \text { Total } \\\hline \text { Sales in Units: } & & & \\\hline \text { Budget } & 1,000 & 1,000 & 2,000 \\\hline \text { Actual } & 1,008 & 1,092 & 2,100 \\\hline \text { Contribution Margins per Unit: } & & & \\\hline \text { Budget } & \$ 30 & \$ 40 & \\\hline \text { Actual } & \$ 25 & \$ 38 & \\\hline \text { Market Volume in Units: } & & & \\\hline \text { Budget } & & & 40,000 \\\hline \text { Actual } & & & 52,500 \\\hline\end{array}$
- What were the sales mix variances for Model X and Model Y,respectively,for last year?

• A) $1,050 unfavourable and $1,596 unfavourable.
• B) $1,260 favourable and $1,680 unfavourable.
• C) $1,260 unfavourable and $1,680 favourable.
• D) $1,500 favourable and $2,000 favourable.

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Definitions:

Personal Rewards

Benefits or compensations received by an individual as a result of their actions or achievements, which can be intrinsic or extrinsic.

Status

The relative rank, prestige, or social standing of an individual or group within a society or organizational hierarchy.

Security

Measures and protocols implemented to protect people, property, or information from threats and unauthorized access.

Dissatisfiers

Factors which, when present, can cause dissatisfaction among employees or consumers, but whose absence does not necessarily lead to satisfaction.