MULTIPLE CHOICE QUESTIONS 15. Paris Perfumery sells two perfumes, L'Amour and Plaisir The expected sales mix is one bottle of L'Amour to five bottles of Plaisir. Planned sales and variable costs for last period were as follows: Plaisir Total Sales units) $400,000 Variable costs (10,000 units) $600,000 (50,000 $1,000,000 Margin $170,000 During the period there was an economic downturn. Sales of L'Amour dropped off, so Paris reduced its price. Actual sales were as follows: Plaisir Total Sales $8) $288,000 Variable costs 153.000 (7,500@ $45) $337,500 $625,500 (36,000 @ Maro318.00016% Margin $172,500 $135,000 The revenue sales quantity variance for L'Amour was: a) $150,000 U b) $150,000 F c) $262,500 U d) $112,000 U Answer: a Difficulty: Easy Learning Objective: Calculate and analyze sales price and sales volume variances 16. Paris Perfumery sells two perfumes, L'Amour and Plaisir The expected sales mix is one bottle of L'Amour to five bottles of Plaisir. Planned sales and variable costs for last period were as follows: Total 16. Paris Perfumery sells two perfumes, L'Amour and Plaisir The expected sales mix is one bottle of L'Amour to five bottles of Plaisir. Planned sales and variable costs for last period were as follows Plaisir (10,000 units) Total Sales $600,000 $400,000 Variable costs 230,000 Contribution Margin (50,000 units) $1,000,000 430,000 During the period there was an economic downturn. Sales of L'Amour dropped off, so Paris reduced its price. Actual sales were as follows Plaisir Total (7,500 @ $45) Sales $337,500 $288,000 Variable costs 153,000 (36,000 @ $8) $625,500 Margin The contribution margin sales mix variance was: a) $11,330 F b) $9.150 U c) $9,150 F d) $10,250 U Answer: C Difficulty: Easy Learning Objective: Calculate and analyze sales mix and sales quantity variances 17. Paris Perfumery sells two perfumes, L'Amour and Plaisir The expected sales mix is one bottle of L'Amour to five bottles of Plaisir. Planned sales and variable costs for last period were as follows Plaisir Total (10,000 units) Sales $600,000 (50,000 units)