(Budgeted sales mix − actual sales mix) × (total quantity sold) × (budgeted contribution margin per unit of the product) equals:
A) Sales efficiency variance.
B) Sales quantity variance.
C) Sales price variance.
D) Sales mix variance.
E) Sales volume variance.

Question

Quizplus · Accepted Answer

The formula given is used to calculate the sales mix variance, which is the difference between the budgeted and actual sales mix. This variance helps managers understand how changes in the sales mix affect overall profits.

(Budgeted Sales Mix − Actual Sales Mix) × (Total Quantity