Question Details

A favorable sales-quantity variance would MOST likely be caused 



1.	The sales-mix variance will be favorable when
	a.	the actual contribution margin is greater than the static-budget contribution margin.
	b.	actual unit sales are less than budgeted unit sales.
	c.	the actual sales mix shifts toward the less profitable units.
	d.	the composite unit for the actual mix is greater than for the budgeted mix.

		

2.	An unfavorable sales-mix variance would MOST likely be caused by
	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.
	

3.	A shift towards a mix of products with a lower contribution-margin per unit will MOST likely result in
	a.	an unfavorable sales-mix variance.
	b.	an unfavorable sales-quantity variance.
	c.	a favorable sales-mix variance.
	d.	a favorable sales-quantity variance.
	

4.	The sales-quantity variance will be unfavorable when
	a.	the composite unit for the actual mix is greater than for the budgeted mix.
	b.	actual unit sales are less than budgeted unit sales.
	c.	the actual contribution margin is greater than the static-budget contribution margin.
	d.	the actual sales mix shifts toward the less profitable units.


5.	A favorable sales-quantity variance would MOST likely be caused by
	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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