Sales mix
Sales mix is the relative proportion of products or services in total sales, measured on the basis specified, such as units or revenue. It affects weighted contribution, break-even calculations and profit, because products have different margins and resource requirements. A multi-product CVP model often assumes a stable mix. Define the measurement basis before comparing mix changes; equal unit shares do not imply equal revenue or contribution shares.
Worked example
Selling 60 A and 40 B gives a 60:40 unit mix. If A sells for $10 and B for $30, their revenue shares are one-third and two-thirds instead.
Common mistake
Do not use a unit mix as a revenue mix without conversion or assume multi-product break-even is unique when the mix changes.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | PM | Direct | September 2026–June 2027 |