The Sales-Mix Variance Will Be Unfavorable When Which of the Following

question 103

Multiple Choice

The sales-mix variance will be unfavorable when which of the following occurs?

• A) the actual sales mix shifts toward the less profitable units
• B) the contribution margin per composite unit for the actual mix is greater than the budgeted mix
• C) the actual unit sales are less than the budgeted unit sales
• D) the actual contribution margin is less than the static-budget contribution margin

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Definitions:

Aggregate Demand Curve

A graphical representation showing the relationship between the overall price level in the economy and the total demand for goods and services at that price level.

Real Output

The total value of all goods and services produced by an economy, adjusted for inflation, representing the actual productivity.

Price Levels

A calculated average price for every good and service produced domestically.

Keynesian Range

A segment of the Aggregate Supply curve where output is significantly influenced by demand, based on Keynesian economics.