An unfavorable sales-mix variance would most likely be caused by which of the following?
A) a new competitor providing better service in the high-margin product sector
B) a competitor having distribution problems with high-margin products
C) the company offering low-margin products at a higher price
D) the company experiencing quality-control problems that get negative media coverage of low-margin products

Question

Quizplus · Accepted Answer

An unfavorable sales-mix variance occurs when a company sells a higher proportion of lower-margin products compared to higher-margin products. A new competitor providing better service in the high-margin product sector could lead to customers preferring the competitor's high-margin products over the company's, thus causing the company to sell a higher proportion of its lower-margin products.

An Unfavorable Sales-Mix Variance Would Most Likely Be Caused by Which