Is the sales mix variance for the basic model favorable or unfavorable?
A)favorable.
B)unfavorable.

Question

Quizplus · Accepted Answer

The actual sales mix of 80% Deluxe and 20% Basic resulted in a higher contribution margin per unit compared to the budgeted sales mix of 70% Deluxe and 30% Basic. This means that the sales mix variance for the Basic model is unfavorable, as selling fewer Basic models than budgeted led to a lower overall contribution margin.

Is the Sales Mix Variance for the Basic Model Favorable