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Calculate the sales mix variance of abc

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Reference no: EM132721354

Problem 1: ABC co. had 2 products A and B. These products are substitutes. A had a sales price of Rs. 10 and B had a sales price of Rs. 8. Budgeted sales of A was 100 units and Budgeted sales of B was 80 units. Actual sales of A was 80 units at Rs. 8 and actual sales of B was 100 units at Rs. 10. Calculate the sales mix variance of ABC.

A. Rs. 80 favourable

B. Rs. 40 favourable

C. Rs. 0

D. Rs. 40 unfavourable

Reference no: EM132721354

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