A sales mix variance:
A)If unfavorable, indicates that a greater percentage of products with higher contribution margins are being sold than were budgeted.
B)Indicates which products are having a negative impact on profits.
C)Reports the effect on profits due to a change in the sales mix from the master budget.
D)Reports the effect on profits due to an overall change in sales quantity.

Question

Quizplus · Accepted Answer

A sales mix variance reports the effect on profits due to a change in the sales mix from the master budget. It does not indicate which products are having a negative impact on profits or whether the variance is unfavorable or favorable. It is also not related to an overall change in sales quantity.

A Sales Mix Variance