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The next year's budget for Green, Inc., a multi-product company, is given below: Product A Product B Sales $ 1,960,000 $ 1,548,750 Variable costs 940,800
The next year's budget for Green, Inc., a multi-product company, is given below:
Product A | Product B | ||||
Sales | $ | 1,960,000 | $ | 1,548,750 | |
Variable costs | 940,800 | 594,300 | |||
Fixed costs | 700,000 | 700,000 | |||
Net income | 319,200 | 254,450 | |||
Units | 245,000 | 105,000 |
At the end of the year, the total fixed costs and the variable costs per unit were exactly as budgeted, but the following units per product line were sold. Green analyzes the effects its sales variances have on the profitability of the company. |
Product lines | Units | Sales | |
A | 246,330 | $ | 1,921,374 |
B | 110,670 | $ | 1,660,050 |
What is the total sales mix variance?
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