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Passkwik Co is a company that supplies learning materials for students who want to study from home. It offers two types of learning material packages
Passkwik Co is a company that supplies learning materials for students who want to study from home. It offers two types of learning material packages called the Basic and the Prizewinner. The Basic package includes a workbook and revision cards. The Prizewinner package includes a workbook, revision cards, mock exams and email access to a tutor. Exams are set by an independent exam board and are sat at the end of each quarter. Quarter 1 Budgeted data for Quarter 1 was: The actual results for Quarter 1 were: Quarter 2 In Quarter 2 the following variances occurred: Several changes were announced by the exam board in Quarter 2 which would take effect in Quarter 3. The exam board stated that it would be changing the syllabus from Quarter 3. Students seemed to think that the new syllabus would make the exams harder. Quarter 3 Budgeted data for Quarter 3 was the same as budgeted data for Quarter 1 Which TWO of the following circumstances explain the adverse sales mix variance in Quarter 2? A rush by all students to sit exams in Quarter 2 before the new syllabus was introduced An increase in the proportion of Basic packages sold compared to the budget Prizewinner sales volume being on budget and Basic sales volume above budget The total actual sales volume of packages being greater than budgeted sales volume A$5 decrease in the selling price of the Prizewinner package to boost sales
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