An unfavorable sales-mix variance would most likely be caused by ________.
A) a new competitor providing better service in the high-margin product sector
B) a competitor having distribution problems with high-margin products
C) the company offering low-margin products at a higher price
D) the company experiencing quality-control problems that get negative media coverage of low-margin products

Question

Quizplus · Accepted Answer

An unfavorable sales-mix variance occurs when the actual sales mix shifts towards lower-margin products. A new competitor providing better service in the high-margin product sector could lead to a decrease in sales of high-margin products, causing an unfavorable sales-mix variance.

An Unfavorable Sales-Mix Variance Would Most Likely Be Caused by ________