Answer the Following Questions Using the Information Below

question 108

Multiple Choice

Answer the following questions using the information below:
The Sarasota Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2012 were as follows:

-What is the total sales-mix variance in terms of the contribution margin?

• A)$200,000 unfavorable
• B)$360,000 unfavorable
• C)$900,000 favorable
• D)$1,260,000 favorable

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Definitions:

Producer Surplus

The divergence between what producers are prepared to agree on for a sale of goods or services and the resultant financial gain.

Consumer Surplus

represents the difference between what consumers are willing to pay for a good or service and what they actually pay, indicating economic welfare.

Tax Revenue

The income generated by the government through the imposition of taxes on goods, services, income, and transactions.

Opportunity Costs

The cost of the next best alternative foregone when a decision is made to choose one option over another.