Kyekyeku Company Retails Two Models of a Product: Model X

question 57

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 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:

Sole Proprietorship

A sole proprietorship is a type of business entity operated and owned by one person who bears complete responsibility for the company's operations and financial obligations.

Crowdfunding

A process where small sums of money are gathered from many people to support a project or enterprise, usually through internet channels.

Financial Statements

Documents that provide an overview of a company or individual's financial condition, including balance sheets, income statements, and cash flow statements.

Public Funds

Financial resources collected and spent by government entities for the benefit and administration of public services.