A shift towards a mix of products with a lower contribution margin per unit will most likely result in a(n)________.
A) unfavorable sales-mix variance
B) unfavorable sales-quantity variance
C) favorable sales-mix variance
D) favorable sales-quantity variance

Question

Quizplus · Accepted Answer

A shift towards products with a lower contribution margin per unit will result in a change in product mix, which could potentially lead to an unfavorable sales-mix variance. This is because the sales mix variance measures the effect of changes in the relative proportions of different products sold, and a shift towards products with lower contribution margins may reduce overall profitability.

A Shift Towards a Mix of Products with a Lower