Question

The sales-mix variance will be unfavorable when which of the following occurs? A) the actual sales...

The sales-mix variance will be unfavorable when which of the following occurs?

A) the actual sales mix shifts toward the less profitable units

B) the contribution margin per composite unit for the actual mix is greater than the budgeted mix

C) the actual unit sales are less than the budgeted unit sales

D) the actual contribution margin is less than the static-budget contribution margin

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Answer #1

Answer :- A) the actual sales mix shifts toward the less profitable units

The sales-mix variance will be unfavorable when "the actual sales mix shifts toward the less profitable units".

Sales mix Variance= Sales mix variance measures the change in profit or contribution attributable to the variation in the proportion of the different products from the standard mix.

So the correct answer is option A. If you still have any query ask in comment section. Thanks

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