The Morton Company Gathered the Following Information for the Year

question 87

Multiple Choice

The Morton Company gathered the following information for the year. $$\begin{array} { | l | r | r | r | } \hline & \begin{array} { r } \text { Procuct } \\\text { Product }\end{array} & \text { Total } \\\hline \begin{array} { l } \text { Budgeted sales mix (units) }\end{array} & 40 \% & 60 \% & 100 \% \\\hline \begin{array} { l } \text { Budgeted and actual sales } \\\text { price }\end{array} & \$ 48 & \$ 36 & \\\hline \begin{array} { l } \text { Budgeted variable cost per } \\\text { unit }\end{array} & \$ 32 & \$ 24 & \\\hline \text { Actual sales (units) } & & & 126,000 \\\hline \text { Actual sales mix } & 60 \% & 40 \% & 100 \% \\\hline \text { Fixed costs } & & & \$ 80,000 \\\hline\end{array}$$ What is the total sales mix variance?

• A) $705,600.
• B) $403,200.
• C) $302,400.
• D) $100,800.

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Definitions:

Combination

A specific arrangement or mix of different elements, items, or ingredients, often resulting in a unique outcome or solution.

Informatics

The study and practice of creating, storing, finding, manipulating and sharing information.

Wisdom

The quality of having experience, knowledge, and good judgment; the ability to make sound decisions in complex situations.

Knowledge Management

The systematic process of creating, sharing, using, and managing the knowledge and information of an organization, to ensure its optimal use and proliferation.