Kyekyeku Company Retails Two Models of a Product: Model X

question 229

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 volume 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.

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Definitions:

Middle Childhood

A developmental stage that occurs roughly between the ages of 6 to 12 years, characterized by significant growth in social, cognitive, and emotional domains.

Adolescence

Adolescence is the developmental stage that occurs between childhood and adulthood, typically characterized by physical, psychological, and social changes.

Early Adulthood

This life stage follows adolescence, typically involving individuals aged 20 to 40, characterized by increased independence, career establishment, and often the formation of long-term relationships.

Organ Reserve

The functional capacity of organs to withstand stress or damage beyond the usual physiological demands, often decreasing with age.