Question
Calculating the Sales mix variance Sales mix variance = (Actual sales volume - Actual sales volume at budgeted mix) x Budgeted Contribution Per unit wireless
Calculating the Sales mix variance
Sales mix variance = (Actual sales volume - Actual sales volume at budgeted mix) x Budgeted Contribution Per unit
wireless models = (8500- 10292.85) *112 = -200799.2 Or 200799.2 Unfavorable
wireless and cellular models = (4600-2807.15) *226 = 405184.1 Favorable
When calculating the Sales mix variance I did not get the same answer. The answer shown from my tutor is not correct. When I check the answer it comes back as incorrect.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The sales mix variance measures the impact on contribution margin when the actua...
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Cost management a strategic approach
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
5th edition
73526940, 978-0073526942
