(Budgeted contribution margin per unit) × (units sold − units budgeted to be sold) × (budgeted sales mix 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 represents the sales quantity variance, which measures the impact on profit of selling a different quantity than budgeted, while keeping the sales mix constant.

(Budgeted Contribution Margin Per Unit) × (Units Sold − Units