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Are both variances (ie sales mix and quantity) multilied by standard contribution per unit or by standard selling price per unit?
It would be nice if you could upload the online lecture that covers this new topic.Normally, the variances are wanted for the operating statement and therefore the mix and quantity variances will be costs at the standard contribution p.u. (marginal costing) or standard profit p.u. (absorption costing).
It is not really a new topic for the exam, but I will try and upload a lecture.
what are the relationship between sales volume variances with the sales mix and quantity variances?
The sales volume variance is the sum of the mix and quantity variance.
If you are selling more that one product, then even if you sell at the standard price, the profit will change either because you sell more in total or because you sell the products in different proportions (or a combination of the two).
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