A museum charges a reduced entrance fee for students in full-time education.

Vendor: CIMA
Product: P1
Update on: Jul 29, 2025
Questions: 260

CIMA P1 Question Answer

A museum charges a reduced entrance fee for students in full-time education. The budgeted cost per customer is the same regardless of the entrance fee paid.

4,000 customers were budgeted to visit the museum during period 6, with 25% of customers paying the reduced fee.

3,000 customers visited the museum during period 6 and 1,000 of these paid the reduced entrance fee. Costs were as budgeted but the actual full-priced entrance fee was $2 higher than budgeted.

Which of the following statements is true?

The sales mix variance is adverse and the sales quantity variance is adverse.

The sales mix variance is zero and the sales quantity variance is favourable.

The sales mix variance is adverse and the sales quantity variance is favourable.

The sales mix variance is zero and the sales quantity variance is adverse.