Get Professional Help in Scoring Grades by Sales-Mix Variance Homework Help
Sales-Mix variance is an important aspect of accounting because it impacts the total revenue of a company. In the era of increasing competition, to score excellent grades in Sales-Mix Variance homework, students should have well-versed knowledge about all concepts related to this topic.Students,sometimes, can encounter difficulties while doing their homework and here sales-mix variance homework help can be a great help.
What does Sales-Mix Variance mean?
Sales-Mix Variance can be defined as the difference between the company’s actual sales mix from the budgeted sales mix. Every company has some estimated plan of sales of each product line, but the actual sales of these products can vary and depends on the customer’s demand so far. With the help of sales-mix variance assignment help, you will get to know about this in detail.
Sales mix basically is ratio of each and every product that company sells compared to the total sales.This is quite obvious that some products will generate more profits than others. Hence, it is very much important factor in determining the total revenue as companies can know that which product is contributing more to sales mix.
Calculating Sales-Mix Variance
Here is step by step method listed below by myhomeworkhelp.com using which you can easily calculate Sales-Mix variance.Let’s find out:
- Subtract the budgeted sales unit from the actual sales unit
- Multiply the result obtained in step 1 by budgeted contribution margin per unit
- Calculate for each product sold by organization similarly
- To find out Sales-Mix variance of organization, just aggregate all these
Formula:
(Actual sales unit – Budgeted sales unit) x Budgeted contribution margin per unit
= Sales-Mix Variance
An example to show Sales-Mix variance calculation
To get a better insight about how to calculate Sales-Mix variance, take help of an example.
- Suppose that a company has a plan to sell 100 units of product X, having a contribution margin of $15 per unit, but actual sales are 80 units.
- The same company also plans to sell 400 units of product Y, having a contribution margin of $8 per unit, but able to actually sell 500 units.
Sales Mix Variance:
Product X: (80 – 100) x $15 = – $300
Product Y: (500 – 400) x $8 = $800
Aggregate Sales Mix-Variance is $500
The important point to note here is that there is a considerable increase in sales where the contribution margin is less and decrease in sales where contribution margin is high.
If you are looking for some more examples to grasp things better or you want an expert to help you out in completing your Sales-Mix variance assignment, then sales-mix variance assignment help can be a great option.
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