An Unfavorable Sales-Mix Variance Would Most Likely Be Caused by Which

question 8

Multiple Choice

An unfavorable sales-mix variance would most likely be caused by which of the following?

• A) a new competitor providing better service in the high-margin product sector
• B) a competitor having distribution problems with high-margin products
• C) the company offering low-margin products at a higher price
• D) the company experiencing quality-control problems that get negative media coverage of low-margin products

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Definitions:

Indicator Variable

A variable used in statistics that takes the value 1 to indicate the presence of a certain condition and 0 to indicate its absence.

Nominal Variables

Categorical variables that have two or more categories without having a natural order or rank.

College Major

The specialized area of study or field chosen by a college or university student to focus their academic coursework and degrees.

Nominal

A level of measurement that categorizes data but does not rank them.