A shift towards a higher proportion of sales of products with a lower contribution margin per unit will most likely result in a(n) ________.
A) unfavorable sales-mix variance
B) unfavorable sales-quantity variance
C) favorable sales-mix variance
D) favorable sales-quantity variance

Question

Quizplus · Accepted Answer

A shift towards a higher proportion of sales of products with a lower contribution margin per unit will result in a lower overall contribution margin per unit sold. This leads to an unfavorable sales-mix variance, as the actual sales mix differs from the expected (budgeted) sales mix.

A Shift Towards a Higher Proportion of Sales of Products