Question

Sales mix is a.a measure of the relative mix of a business's variable costs and fixed costs, computed as contribution margin divided by operating income. b.the amount of income forgone from an alternative to a proposed use of cash or its equivalent. c.the relative distribution of sales among the products sold by a company. d.the possible decrease in sales that may occur before an operating loss results.

Answer 1

Answer: Option (C)

Explanation:

Sales mix is referred to as or known as the calculation that tends to determine proportion of each commodity or product that a business/organization sells relative to the total sales. Sales mix is mostly significant since some of the products, commodity or services tends to be much more profitable than the others, and thus if an organization's sales mix changes,so will its profits.