(Appendix 11A)For organizations that sell multiple products, contribution margin and sales mix variances are often useful for decision making.

Question

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Contribution margin variance and sales mix variance help organizations to understand the profitability of individual products and the impact of the product mix on overall profitability. This information can be used to make decisions such as pricing, product mix, and marketing strategies to maximize profits.

(Appendix 11A)For Organizations That Sell Multiple Products, Contribution Margin and Sales