The following are the relevant data for calculating sales variances for Fortuna Co., which sells its sole product in two countries: Gallia Helvetica Total Budgeted selling price per unit $6.00 $10.00 -- Budgeted variable cost per unit (3.00) (7.50) -- Budgeted contribution margin per unit $3.00 $ 2.50 -- Budgeted unit sales 300 200 500 Budgeted mix percentage 60% 40% 100% Actual units sold 260 260 520 Actual selling price per unit $6.00 $ 9.50 NA Question The sales mix variance for the two countries is

$26 U

Explanation:

Calculation to determine what The sales mix variance for the two countries is

First step is to calculate the sales mix variance in Gallia

Using this formula

Sales mix variance in Gallia={[Actual units sold-(Actual total units sold×Budgeted percentage)×Budgeted UCM}

Let plug in the formula

Sales mix variance in Gallia= {[260 –(520 actual × .6 )] × $3 }

Sales mix variance in Gallia=$156 U

Second step is to calculate the sales mix variance in Helvetica using this formula

Sales mix variance in Helvetica={[Actual units sold-(Actual total units sold×Budgeted percentage)×Budgeted UCM}

Let plug in the formula

Sales mix variance in Helvetica= {[260 –(520 × .4 )] × $2.50 }

Sales mix variance in Helvetica=$130 F

Now let calculate the multiple-country sales mix variance using this formula

Sales mix variance =Sales mix variance in Gallia-

Sales mix variance in Helvetica

Let plug in the formula

Sales mix variance= ($156 U –$130 F)

Sales mix variance=$26U

Therefore The sales mix variance for the two countries is $26U

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