1. Sales Mix Variance

   Iliff, Inc., produces and sells two types of countertop ovensthe toaster oven and the convection oven. Budgeted and actual data for the two models are shown below.

   Budgeted Amounts:

   		Toaster Oven		Convection Oven		Total
   Sales:
   ($90 25,000)		$2,250,000
   ($150 15,000)				$2,250,000		$4,500,000
   Variable expenses		500,000		750,000		1,250,000
   Contribution margin		$1,750,000		$1,500,000		$3,250,000

   Actual Amounts:

   		Toaster Oven		Convection Oven		Total
   Sales:
   ($88 25,800)		$2,270,400
   ($160 14,000)				$2,240,000		$4,510,400
   Variable expenses		541,800		742,000		1,283,800
   Contribution margin		$1,728,600		$1,498,000		$3,226,600

   Required:

   1. Calculate the sales mix variance. $fill in the blank 1

   FavorableUnfavorable

   2. What if actual units sold of the toaster oven increased? How would that affect the sales mix variance?

   It would become less unfavorable or more favorable.It would become more unfavorable or less favorable.

   What if actual units sold of the convection oven increased? How would that affect the sales mix variance?

   It would become less unfavorable or more favorable.It would become more unfavorable or less favorable.

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