Calculate the predicted and actual sales mix

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Problem - Consider an example of a new car sale yard and the managers predicted that they would sell 1,400 of model A and 1,800 of model B in the fiscal year. They would prepare their budget accordingly. Sales of model A did not meet expectations and sold 1,200 units. Model B had sales rise to 2,400 vehicles for the year. The expected margin on each vehicle is $2,000 for model A and $3,000 for model B. Calculate the predicted and actual sales mix and the impact of the variations on income.

Reference no: EM132841341

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