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:

Intranets

Private networks within an organization designed to enable employees to share information, collaborate, and streamline processes securely.

Company Network

The digital and interpersonal connections that link companies with their employees, customers, and other businesses.

Secure Connections

Secure Connections are encrypted communication paths between two or more entities, ensuring data privacy and protection against unauthorized access.

Desktop Publishing

The use of software and a personal computer to create visual documents for professional publishing or personal use.