The Next Year's Budget for Trend,Inc At the End of the Year,the Total Fixed Costs and Below

question 103

Multiple Choice

The next year's budget for Trend,Inc. ,a multi-product company,is given below: $$\begin{array} { | l | r | r | } \hline & \text { Product } A & \text { Product B } \\\hline \text { Sales } & \$ 1,890,000 & \$ 1,377,000 \\\hline \text { Variable costs } & 926,100 & 596,700 \\\hline \text { Fixed costs } & 500,000 & 500,000 \\\hline \text { Net income } & \underline{463,900} &\underline{ 280,300 }\\\hline \text { Units } & 252,000 & 108,000 \\\hline\end{array}$$
At the end of the year,the total fixed costs and the variable costs per unit were exactly as budgeted,but the following units per product line were sold.Trend,Inc.analyzes the effects its sales variances have on the profitability of the company.

$$\begin{array} { | c | c | r | } \hline \text { Product Lines } & \text { Units } & \text { Sales } \\\hline \text { A } & 253,230 & \$ 1,848,579 \\\hline \text { B } & 113,770 & \$ 1,479,010 \\\hline\end{array}$$ What is the total sales mix variance?

• A) $12,478.00.
• B) $20,815.00.
• C) $33,915.00.
• D) $40,553.50.

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Definitions:

Markovnikov's Rule

A rule in organic chemistry that predicts the regiochemistry of halogen addition to alkenes, where the halogen atom bonds to the more substituted carbon.

Hydrogen Halides

Compounds formed by the reaction of hydrogen with halogen elements, resulting in hydrogen fluoride, hydrogen chloride, hydrogen bromide, and hydrogen iodide.

Relative Stabilities

The comparative energy levels of molecules or conformations, indicating how likely they are to exist under standard conditions.

Regio-

A prefix indicating the region or position in a molecule where a certain chemical reaction takes place or where certain substituents are located.