The sales mix variance would be:
A) favorable when a company sells relatively fewer of the products that have contribution margins lower than average.
B) favorable when a company sells relatively more of the products that have contribution margins higher than average.
C) unfavorable when a company sells relatively fewer of the products that have selling prices higher than average.
D) unfavorable when a company sells more of the products that have selling prices lower than average.

Question

Quizplus · Accepted Answer

The sales mix variance is favorable when a company sells more of the products with higher contribution margins, as this increases overall profitability.

The Sales Mix Variance Would Be