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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).
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 | $ | 40 | $ | 60 | $ | 50 | $ | 56 | ||||
Variable cost per pound | 20 | 36 | 24 | 40 | ||||||||
Sales (in pounds) | 4,300 | 4,300 | 4,026 | 5,124 | ||||||||
The total market was estimated to be 86,000 pounds at the time of budget. The actual total market for the year is 84,000 pounds.
What is the firm's total sales mix variance?
Multiple Choice
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$2,196 favorable.
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$6,916 favorable.
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$10,956 favorable.
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$2,556 unfavorable.
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$996 unfavorable.
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