Question: A machine distributor sells two models, basic and deluxe. The following information relates to its master budget. Basic Deluxe Sales (units) 12,000 3,000 Sales price

A machine distributor sells two models, basic and deluxe. The following information relates to its master budget. Basic Deluxe Sales (units) 12,000 3,000 Sales price per unit $ 7,000 $ 14,000 Variable costs per unit $ 5,500 $ 10,000 Actual sales were 11,400 basic models and 3,400 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models. What is the sales mix variance for the basic model? $1,760,000. $660,000. $900,000. $240,000.

how is the answer 660,000?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!