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    elisenikol's Avatar
    elisenikol Posts: 1, Reputation: 1
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    #1

    Mar 31, 2009, 12:18 PM
    sales mix
    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's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    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's Avatar
    MaggieMouse Posts: 226, Reputation: 8
    Full Member
    		  
    #3

    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.
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