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 $ 90 $ 60 $ 85 Variable cost per pound 25 54 27 60 Sales (in pounds) 3,300 3,300 3,192 4,408 The total market was estimated to be 75,000 pounds at the time of budget. The actual total market for the year is 68,000 pounds. What is MT's sales mix variance? Multiple Choice $16,880 unfavorable. $15,200 unfavorable. $16,880 unfavorable. $18,440 unfavorable. $18,440 unfavorable. $15,200 unfavorable. $48,800 unfavorable. $14,000 unfavorable.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Q20
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 | $ 90 | $ 60 | $ 85 |
| Variable cost per pound | 25 | 54 | 27 | 60 |
| Sales (in pounds) | 3,300 | 3,300 | 3,192 | 4,408 |
The total market was estimated to be 75,000 pounds at the time of budget. The actual total market for the year is 68,000 pounds.
What is MT's sales mix variance?
-
$16,880 unfavorable.
-
$15,200 unfavorable.
-
$16,880 unfavorable.
-
$18,440 unfavorable.
-
$18,440 unfavorable.
-
$15,200 unfavorable.
-
$48,800 unfavorable.
-
$14,000 unfavorable.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
