Sales-volume, sales-mix, and sales-quantity variance. Lexota, Inc., an auto manufacturer,… 1 answer below »

 
   

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Sales-volume, sales-mix, and sales-quantity variance. Lexota, Inc., an auto manufacturer, reported the following budgeted and actual sales of its vehicles during September, Year 2:

 

The budgeted contribution margin is 20% for both vehicle types. Which of the following statements is true concerning the sales variances for Lexota, Inc. for September, Year 2?

a. The sales-volume variance for the company is favorable.

b. The sales-quantity variance for the company is unfavorable.

c. The budgeted variable cost for each vehicle type is the same.

d. The sales-mix variance for the company is unfavorable.