Log in

View Full Version : Sales mix


elisenikol
Mar 31, 2009, 12:18 PM
family furniture co. consists of two divisions, bedroom division and dining room division. The results of operations for the most recent quarter are:

Bedroom division Dining room div. Total
Sales $500,000 750,000 1,250,000
Variable costs 250,000 450,000 700,000
Contribution Margin 250,000 300,000 550,000

(a) Determine the company's sales mix.

ROLCAM
Apr 1, 2009, 03:12 AM
Very simple:-

The sales mix:-

Bedroom division Dining room div. Total
Sales $500,000 750,000 1,250,000

MIX 2 : 3 = 5
MIX % = 40 % is to 60% = Total 100%

MaggieMouse
Apr 1, 2009, 02:15 PM
The question should also identify sales mix by revenue or by profitability, since it also gave you the contribution margin.

If by revenue, see the above answer.

If you profitability, then you need to use the contribution margin instead of using the sales amount.