An unfavorable sales mix variance arises for a product when the:
A) Actual units sold are greater than the budgeted units to be sold.
B) Actual units sold are less than the budgeted units to be sold.
C) Actual sales mix percentage is less than the budgeted sales mix percentage.
D) Budgeted sales mix percentage is less than the actual sales mix percentage.
E) Total actual sales dollar from the product is less than the budgeted sales dollar for the product.

Question

Quizplus · Accepted Answer

An unfavorable sales mix variance occurs when the actual sales mix percentage is less than the budgeted sales mix percentage, indicating that a higher proportion of lower-margin products were sold than planned.

An Unfavorable Sales Mix Variance Arises for a Product When