Question

Sales mix is

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

Answer 1

a. the relative distribution of sales among the products sold by a company.

Step-by-step explanation:

• A sale mix is a relative part or ratio of the business products are sold and as the companies products have different degrees of productivity they are also applicable to services.

• It thus can be expressed as the ratio of the products with each and every product compared to the overall volume of the product.

• Thus, if a company tries to get a new product which has a lower profit, then sells it very aggressively it will make a low profit where the total sales will be increased.

• Similarly, if a company selects to develop a low-profit line and push sales of a higher profit from the product line, then the total profits will then increase even as the total sales tend to decline.