When the mix of products sold shifts toward the high contribution margin product, the total:
A) Sales mix variance is favorable.
B) Sales volume variance is favorable.
C) Market mix variance is favorable.
D) Sales mix variance is unfavorable.
E) Sales price variance is favorable.

Question

Quizplus · Accepted Answer

When the mix of products sold shifts toward the high contribution margin product, it means that a larger proportion of sales is coming from products that contribute more to covering fixed costs and generating profit. This results in a favorable sales mix variance, as the company is effectively selling a more profitable mix of products.

When the Mix of Products Sold Shifts Toward the High