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14. Which of the following statements is NOT true about a sales mix variance?
A.If actual sales revenues from two products are in the same ratio as the budgeted sales revenues there is no measurable sales mix variance
B.If all products have the same budgeted margin there is no measurable sales mix variance
C.If actual sales volumes are in the same ratio as the budgeted sales volumes there is no measurable sales mix variance
D.If the actual sales volumes of all products are 10% above the budgeted sales volumes, there is no measurable sales mix varianceAnswer is option A. And I understand the first three option but didn’t get the last option.
Why the option D is true??
Can you please explain me with the examples ??Option D is true because if the actual sales volumes of all products are 10% above the budgeted sales volumes, it tells you that the proportion of units sold for each product remains unchanged.
Since there is no change in the sales mix which is the ratio of products sold, then there is no measurable sales mix variance.
So for example if the budgeted sales volumes for products A and B were 100 units each, but the actual sales volumes was 110 units for both products, the sales mix remains the same (50% for A & 50% for B).
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