The Morton Company gathered the following information for the year.
$\begin{array}{lllr}
&\text { Product } \mathrm{K} & \text { Product } \mathrm{R} & \text { Total }\
\text { Budgeted sales mix (units) } & 40 \% & 60 \% & 100 \% \
\text { Budgeted and actual sales price } & \$ 48 & \$ 36 & \
\text { Budgeted variable cost per unit } & \$ 32 & \$ 24 &\
\text { Actual sales (units) } & & & 126,000 \
\text { Actual sales mix } & 60 \% & 40 \% & 100 \%\
\text { Fixed costs } & & & \$ 80,000
\end{array}$

What is the total sales mix variance?
A) $705,600.
B) $403,200.
C) $302,400.
D) $100,800.

Question

The Morton Company gathered the following information for the year.
$\begin{array}{lllr}
&\text { Product } \mathrm{K} & \text { Product } \mathrm{R} & \text { Total }\
\text { Budgeted sales mix (units) } & 40 \% & 60 \% & 100 \% \
\text { Budgeted and actual sales price } & \$ 48 & \$ 36 & \
\text { Budgeted variable cost per unit } & \$ 32 & \$ 24 &\
\text { Actual sales (units) } & & & 126,000  \
\text { Actual sales mix } & 60 \% & 40 \% &  100 \%\
\text { Fixed costs } & & & \$ 80,000
\end{array}$

What is the total sales mix variance?
A) $705,600.
B) $403,200.
C) $302,400.
D) $100,800.

Quizplus · Accepted Answer

The Answer of The Morton Company gathered the following information for the year.
$\begin{array}{lllr}
&\text { Product } \mathrm{K} & \text { Product } \mathrm{R} & \text { Total }\
\text { Budgeted sales mix (units) } & 40 \% & 60 \% & 100 \% \
\text { Budgeted and actual sales price } & \$ 48 & \$ 36 & \
\text { Budgeted variable cost per unit } & \$ 32 & \$ 24 &\
\text { Actual sales (units) } & & & 126,000  \
\text { Actual sales mix } & 60 \% & 40 \% &  100 \%\
\text { Fixed costs } & & & \$ 80,000
\end{array}$

What is the total sales mix variance?
A) $705,600.
B) $403,200.
C) $302,400.
D) $100,800.

The Morton Company Gathered the Following Information for the Year