P1 串讲Sales-Volume Variances The sales-volume variance •is the difference between a flexible-budget amount and the corresponding static-budget amount. •(the actual number of units sold- static-budget units sold )* budgeted unit contribution margin.
P1 串讲Sales-Volume Variances A greater understanding of the sales-volume variance can be obtained when it is broken down into the sales-mix varianceand the sales-quantity variance.Sales-Mix Variance •Measures shifts between selling more or less of higher or lower profitable products •The sales-mix variance is best understood in terms of a composite unit—a hypothetical unit with weights based on the mix of individual units.
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P1 串讲Sales-Mix Variance Budgeted Sales Mix Percentage Actual Sales - Mix Percentage X Budgeted Contribution Margin per Unit Sales - Mix Variance = Actual Units of All Products Sold X - A favorable sales mix variance arises when the actual sales mix shifts toward the products having the largest contribution margins.