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A Machine Distributor Sells Two Models,basic and Deluxe What Is the Sales Mix Variance for the Basic Model

question 72

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A machine distributor sells two models,basic and deluxe.The following information relates to its master budget.Actual sales were 7,000 basic models and 2,800 deluxe models.The actual sales prices were the same as the budgeted sales prices for both models.  Basic  Deluse  Sales (units)  8,0002,000 Sales price per unit $8,000$12,000 Variable costs per unit $6,400$9,000\begin{array} { | l | r | r | } \hline & \text { Basic } & \text { Deluse } \\\hline \text { Sales (units) } & 8,000 & 2,000 \\\hline \text { Sales price per unit } & \$ 8,000 & \$ 12,000 \\\hline \text { Variable costs per unit } & \$ 6,400 & \$ 9,000 \\\hline\end{array} What is the sales mix variance for the basic model?

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Definitions:

Promotion

A marketing strategy involving the publicization of a product, organization, or service to increase sales or public awareness.

Ethical Development

The process of developing and enhancing an individual’s or organization's ethical standards and practices.

Preconventional

A stage of moral development where an individual's sense of morality is externally controlled, with behavior driven by anticipation of pleasure or punishment.

Reckless Driver

An individual who operates a vehicle in a manner that displays a willful disregard for safety rules and regulations.

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