A machine distributor sells two models, basic and deluxe The following information relates to its master budget Basic Deluxe Sales (units) 11,400 2,850 Sales price per unit $ 9,700 $ 13,700 Variable costs per unit $ 9,120 $ 10,275 Actual sales were 12,400 basic models and 2,050 deluxe models The actual sales prices were the same as the budgeted sales prices for both models Is the sales mix variance for the basic model favorable or unfavorable Multiple Choice Favorable Unfavorable

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Question: A machine distributor sells two models, basic and deluxe. The following information relates to its master budget. Basic Deluxe Sales (units) 11,400 2,850 Sales price

A machine distributor sells two models, basic and deluxe. The following information relates to its master budget.

	Basic		Deluxe
Sales (units)		11,400		2,850
Sales price per unit	$	9,700	$	13,700
Variable costs per unit	$	9,120	$	10,275

Actual sales were 12,400 basic models and 2,050 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models. Is the sales mix variance for the basic model favorable or unfavorable?

Multiple Choice

Favorable.
Unfavorable.

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