A Machine Distributor Sells Two Models,basic and Deluxe

question 32

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.What is the sales activity variance for the basic model?

• A)$1,280,000.
• B)$1,600,000.
• C)$11,200,000.
• D)$12,800,000.

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Definitions:

Aggregate Supply Curve

An illustrative depiction that exhibits the connection between total economic output and the general price level.

Real GDP

Real Gross Domestic Product measures the value of all final goods and services produced within a country's borders in a specific time period, adjusted for inflation.

Equation of Exchange

An economic formula representing the relationship between the money supply, its velocity, the price level, and the volume of transactions in an economy.

Money Supply

The collected amount of financial resources in an economy at a pointed-out time.