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As the bakery manager at the local grocery store, Donald monitored the mix of products most popular with consumers. Just two years earlier, this store
As the bakery manager at the local grocery store, Donald monitored the mix of products most popular with consumers.
Just two years earlier, this store sold eight loaves of bread for each package of buns sold. Today, the ratio is closer to six
to one, bread to buns. Donald isn't sure why tastes or buying behavior have changed, but it's significant, so his
purchasing behavior has changed accordingly.
For the year just ended, the bakery department budgeted for sales of loaves of bread and packages of
buns. Actual sales were loaves of bread and packages of buns. Budgeted selling price and variable cost per
unit for each were as follows.
This year, the bread actually sold for $ per loaf, while the package of buns sold for $
a
b
Determine the sales mix and sales quantity variances for the bakery this period, specifying the amount and sign for
each. Round answers to decimal places, eg
Sales mix variance
$
Sales quantity variance $
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