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Hi Dear Tutor, please make your opinion about my comment on sales quantity and sales mix.
Sales mix variance-13366A
commodity 1-9442A
commodity 2-7560-F
commodity 3-11484-ASales Quantity Variance 16406F
commodity 1-7202F
commodity 2-2520F
commodity 3-6684FSales mix variance is $13366 unfavourable due to the lower sales volume of Commodity 1 and Commodity 3 having the higher profit than Commodity 2 having the higher profit. In other words, more profitable product sold less and less profitable product sold more. Also, Block Co sold less(actual sales in actual mix) what would have been expected to sell (actual sales in budget mix).
Sales quantity is $16406 favourable mainly because sales volumes were higher than than budget sales therefore the variance performed satisfactory. This is because there are competitors in the market as well as sales price fluctuations caused reduction in selling price compared to actual sales price.
Sales mix variance is $13366 unfavourable due to the lower sales volume of Commodity 1 and Commodity 3 having the higher profit than Commodity 2 having the lower profit. In other words, more profitable product sold less and less profitable product sold more. Also, Block Co sold less(actual sales in actual mix) what would have been expected to sell (actual sales in budget mix).
Sales quantity is $16406 favourable mainly because sales volumes were higher than than budget sales therefore the variance performed satisfactory. This is because there are competitors in the market as well as sales price fluctuations caused reduction in selling price compared to actual sales price.
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