Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year: Budgeted Operating Results MT ET MT ET Price per pound $ 50 $ 70 $ 60 $ 65 Variable cost per pound 25 42 27 46 Sales (in pounds) 3,970 3,970 3,864 4,536 The total market was estimated to be 86,000 pounds at the time of budget. The actual total market for the year is 81,000 pounds. What is ET's sales mix variance? Multiple Choice $21,408 favorable. $7,968 favorable. $5,088 favorable. $4,128 favorable. $9,408 favorable.
Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year: Budgeted Operating Results MT ET MT ET Price per pound $ 50 $ 70 $ 60 $ 65 Variable cost per pound 25 42 27 46 Sales (in pounds) 3,970 3,970 3,864 4,536 The total market was estimated to be 86,000 pounds at the time of budget. The actual total market for the year is 81,000 pounds. What is ET's sales mix variance? Multiple Choice $21,408 favorable. $7,968 favorable. $5,088 favorable. $4,128 favorable. $9,408 favorable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q30
Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year:
| Budgeted | Operating Results | |||
|---|---|---|---|---|
| MT | ET | MT | ET | |
| Price per pound | $ 50 | $ 70 | $ 60 | $ 65 |
| Variable cost per pound | 25 | 42 | 27 | 46 |
| Sales (in pounds) | 3,970 | 3,970 | 3,864 | 4,536 |
The total market was estimated to be 86,000 pounds at the time of budget. The actual total market for the year is 81,000 pounds.
What is ET's sales mix variance?
Multiple Choice
-
$21,408 favorable.
-
$7,968 favorable.
-
$5,088 favorable.
-
$4,128 favorable.
-
$9,408 favorable.
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