The sales-mix variance is calculated by ________.
A) deducting budgeted contribution margin based on actual units at budgeted mix from budgeted contribution margin based on actual units sold at the actual mix
B) deducting budgeted contribution margin based on budgeted units at actual mix from budgeted contribution margin based on actual units sold at the budgeted mix
C) deducting budgeted contribution margin based on actual units at actual mix from budgeted contribution margin based on budgeted units sold at the budgeted mix
D) deducting budgeted contribution margin based on actual units at actual mix from budgeted contribution margin based on actual units sold at the actual mix

Question

Quizplus · Accepted Answer

The sales-mix variance is the difference between the budgeted contribution margin based on the actual units sold at the actual mix and the budgeted contribution margin based on the actual units sold at the budgeted mix. Therefore, the correct formula is to deduct the budgeted contribution margin based on actual units at budgeted mix from the budgeted contribution margin based on actual units sold at the actual mix, which is option A.

The Sales-Mix Variance Is Calculated by ________