The sales-mix variance will be favorable when ________.
A) the actual contribution margin is greater than the static-budget contribution margin
B) actual unit sales are more than budgeted unit sales
C) the actual sales mix shifts toward the less profitable units
D) the budgeted contribution margin for actual sales mix is greater than for the budgeted mix

Question

Quizplus · Accepted Answer

Sales-mix variance occurs when the actual sales mix is different from the budgeted sales mix. If the budgeted contribution margin for the actual sales mix is greater than for the budgeted mix, then the sales-mix variance will be favorable because the actual sales mix has generated more contribution margin than the budgeted sales mix.

The Sales-Mix Variance Will Be Favorable When ________