Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year:     Budgeted Operating Results   MT ET MT ET Price per pound $ 50 $ 90 $ 60 $ 85 Variable cost per pound 25 54 27 60 Sales (in pounds) 3,300 3,300 3,192 4,408   The total market was estimated to be 75,000 pounds at the time of budget. The actual total market for the year is 68,000 pounds.   What is MT's sales mix variance?   Multiple Choice   $16,880 unfavorable.   $15,200 unfavorable.   $16,880 unfavorable.   $18,440 unfavorable.   $18,440 unfavorable.   $15,200 unfavorable.   $48,800 unfavorable.   $14,000 unfavorable.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year:

 

  Budgeted Operating Results
  MT ET MT ET
Price per pound $ 50 $ 90 $ 60 $ 85
Variable cost per pound 25 54 27 60
Sales (in pounds) 3,300 3,300 3,192 4,408

 

The total market was estimated to be 75,000 pounds at the time of budget. The actual total market for the year is 68,000 pounds.

 

What is MT's sales mix variance?

 

Multiple Choice
  •  
    $16,880 unfavorable.
  •  
    $15,200 unfavorable.
  •  
    $16,880 unfavorable.
  •  
    $18,440 unfavorable.
  •  
    $18,440 unfavorable.
  •  
    $15,200 unfavorable.
  •  
    $48,800 unfavorable.
  •  
    $14,000 unfavorable.
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