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Chapter 10

7.2 Sales mix variance

A sales mix variance indicates the effect on profit of changing the mix of actual sales
from the standard mix. A sales mix variance can be calculated in one of two ways:

Method 1

The difference between the actual quantity sold in the standard mix and the actual
quantities sold, valued at the standard profit per unit:

Product Actual Quantity, Actual Difference @ Standard Variance
Actual Mix (AQAM) Quantity, price
Standard Mix
(AQSM)

P1 X units A units X – A $M1 $Var
(F/A)

P2 Y units B units Y – B $M2 $Var
(F/A)
P3 Z units C units Z – C $M3 $Var
(F/A)

Sum (X+Y+Z) Sum (X+Y+Z) Total = 0 $Total
sales
mix
(F/A)

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