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If all products have the same budgeted margin, there is no measurable sales mix variance. TRUE.
Why is this sentence true if it is not taking into consideration the possible difference in actual volumes?
This is because sales mix variance measures the difference between the actual and budgeted
(profit or contribution ) margin due to changes in the product mix sold.If all products have the same margin, there would be no variation in profitability based on the mix of products sold. Therefore, the sales mix variance would be zero.
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