Answer the following questions using the information below:
The Tornado Dust Removers Corporation manufactures two vacuum cleaners,the Standard and the Supreme.The following information was gathered about the two products:
$$\begin{array} { l r r }
& \text { Standard } & \text { Supreme } \
\text { Bud geted sales in urits } & 4000 & 1000 \
\text { Bud geted selling price } & \$ 300 & \$ 850 \
\text { Bud geted contribution margin per unit } & \$ 210 & \$ 550 \
\text { Actual sales in units } & 3500 & 1500 \
\text { Actual selling price } & \$ 325 & \$ 840
\end{array}$$
-What is the total sales-mix variance in terms of the contribution margin?

Question

Answer the following questions using the information below:
The Tornado Dust Removers Corporation manufactures two vacuum cleaners,the Standard and the Supreme.The following information was gathered about the two products:
 $$\begin{array} { l r r } 
& \text { Standard } & \text { Supreme } \
\text { Bud geted sales in urits } & 4000 & 1000 \
\text { Bud geted selling price } & \$ 300 & \$ 850 \
\text { Bud geted contribution margin per unit } & \$ 210 & \$ 550 \
\text { Actual sales in units } & 3500 & 1500 \
\text { Actual selling price } & \$ 325 & \$ 840
\end{array}$$
-What is the total sales-mix variance in terms of the contribution margin?

Quizplus · Accepted Answer

The total sales-mix variance in terms of the contribution margin is calculated by comparing the actual mix of products sold to the budgeted mix, multiplied by the total actual sales quantity, and then by the budgeted contribution margin per unit. The correct option, $170,000 favourable, indicates that the actual sales mix resulted in a higher contribution margin than the budgeted sales mix by $170,000.

Answer the Following Questions Using the Information Below: the Tornado

Answer the Following Questions Using the Information Below:
the Tornado