Question: A machine distributor sells two models, basic and deluxe. The following information relates to its master budget. BASIC- Sales (units 1100) Sales price per unit

A machine distributor sells two models, basic and deluxe. The following information relates to its master budget. BASIC- Sales (units 1100) Sales price per unit 9500 Variable costs per unit 8800

Deluxe Sales units 2750 Sales price per unit 13500 Variable Costs per unit 10125

Actual sales were 12000 basic models and 1950 deluxe models. The actual price were the same as the budgeted sales price for both models. Is the sales activity variance for the basic model favorable or unfavorable.

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c. Time off. Employees who achieve sales goals established by management could earn up to four hours of paid time off each week.

Explain how to reward individual and team performance.

a. Employee-of-the-month awards for highest sales. (A special plaque would be used to recognize each monthly winner.)