The sales-mix variance can be explained in terms of the budgeted contribution margin per composite unit of the sales mix.

Question

Quizplus · Accepted Answer

The sales-mix variance is the difference between the budgeted contribution margin and the actual contribution margin resulting from a change in the sales mix. It can be calculated by using the budgeted contribution margin per composite unit and the actual number of units sold for each product in the sales mix. Therefore, the statement is true.

The Sales-Mix Variance Can Be Explained in Terms of the Budgeted