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.