Use the information below to answer the following question(s).Teddy Bear Company sold a total of 30,000 stuffed tigers and lions.During August the following information was gathered:

-When the actual mix of products sold shifts in favour of the high-contribution-margin product

Question

Use the information below to answer the following question(s).Teddy Bear Company sold a total of 30,000 stuffed tigers and lions.During August the following information was gathered:
 
-When the actual mix of products sold shifts in favour of the high-contribution-margin product

Quizplus · Accepted Answer

When the actual mix of products sold shifts in favor of the high-contribution-margin product, the total sales-mix variance is favorable. This is because selling more high-contribution-margin products will increase the overall profit margin. The total sales-volume variance may be either favorable or unfavorable, depending on whether the shift in product mix resulted in an increase or decrease in the total number of units sold. However, the question only asks about the impact on the sales-mix variance, not the sales-volume variance or total sales volume.

Use the Information Below to Answer the Following Question(s)