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

question 72

Multiple Choice

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. $$\begin{array} { | l | r | r | } \hline & \text { Basic } & \text { Deluse } \\\hline \text { Sales (units) } & 8,000 & 2,000 \\\hline \text { Sales price per unit } & \$ 8,000 & \$ 12,000 \\\hline \text { Variable costs per unit } & \$ 6,400 & \$ 9,000 \\\hline\end{array}$$ What is the sales mix variance for the basic model?

• A) $256,000.
• B) $1,344,000.
• C) $1,600,000.
• D) $2,520,000.

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