(Appendix 11A) Kyekyeku Company Retails Two Models of a Product

(Appendix 11A) Kyekyeku Company retails two models of a product: Model X and Model Y. It considers both products to be close substitutes. The following data relate to the company's operations for last year:

-(Appendix 11A) What were the sales mix variances for Model X and Model Y,respectively,for last year?

A) $1,050 unfavourable and $1,596 unfavourable.
B) $1,260 favourable and $1,680 unfavourable.
C) $1,260 unfavourable and $1,680 favourable.
D) $1,500 favourable and $2,000 favourable.

Correct Answer:

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