A machine distributor sells two models, basic and deluxe. The following information relates to its master budget. Basic Deluxe Sales (units) 8,000 2,000 Sales price per unit$8,000 $12,000 Variable costs per unit$6,400 $9,000 Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models.Is the sales mix variance for the basic model favorable or unfavorable?
A. Unfavorable.
B. Favorable.
Answer: A
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