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The Next Year's Budget for Trend, Inc At the End of the Year, the Total Fixed Costs

Question 65

Multiple Choice

The next year's budget for Trend, Inc., a multi-product company, is given below:  Product A  Product B  Sales $1,890,000$1,377,000 Variable costs 926,100596,700 Fixed costs 500,000500,000 Net income 463,900280,300 Units 252,000108,000\begin{array}{lrrrr}&\text { Product A } & \text { Product B }\\\text { Sales } & \$ 1,890,000 & \$ 1,377,000 \\\text { Variable costs } & 926,100 & 596,700 \\\text { Fixed costs } & \underline{500,000} & \underline{ 500,000} \\ \text { Net income } & \underline{ \underline{ 463,900 }}& \underline{ \underline{ 280,300}} \\ \text { Units } & 252,000 & 108,000\end{array}
At the end of the year, the total fixed costs and the variable costs per unit were exactly as budgeted, but the following units per product line were sold. Trend, Inc. analyzes the effects its sales variances have on the profitability of the company.
 Product Lines  Units  Sales  A 253,230$1,848,579 B 113,770$1,479,010\begin{array} { c c c } \text { Product Lines } & \text { Units } & \text { Sales } \\\text { A } & 2 5 3 , 2 3 0 & \$ 1 , 8 4 8 , 5 7 9 \\\text { B } & 113,77 0& \$ 1 , 4 7 9 , 0 1 0 \end{array}
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What is the total sales mix variance?


A) $12,478.00.
B) $20,815.00.
C) $33,915.00.
D) $40,553.50.

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