Question
A-zone sells two models of e-readers. The budgeted price per unit for the wireless model is $192 and the budgeted price per unit for the
A-zone sells two models of e-readers. The budgeted price per unit for the wireless model is $192 and the budgeted price per unit for the cellular model is $416. The master budget called for sales of 10,000 wireless models and 2,500 cellular models during the current year. Actual results showed sales of 7,500 wireless models, with a price of $200 per unit, and 4,000 wireless models, with a price of $400 per unit. The standard variable cost per unit is $80 for a wireless model and $160 for a cellular model.
Required: Break down the activity variance into mix and quantity parts. Explain the results
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