The sales volume variance can be subdivided into a mix variance if the proportions of products sold are controllable.

**Sales mix variance**

This variance indicates the effect on profit of changing the mix of actual sales from the standard mix.

__It can be calculated in one of two ways.__- The difference between the actual total quantity sold in the standard mix and the actual quantities sold, valued at the standard margin per unit.
- The difference between actual sales and budgeted sales, valued at (standard profit per unit – budgeted weighted average profit per unit)

**Sales quantity variance**

This variance indicates the effect on profit of selling a different total quantity from the budgeted total quantity.

__It can be calculated in one of two ways.__- The difference between actual sales volume in the standard mix and budgeted sales valued at the standard margin per unit.
- The difference between actual sales volume and budgeted sales valued at the budgeted weighted average profit per unit.

KEY.With all variance calculations, from the most basic (such as variable cost variances) to the more complex (such as mix and yield / mix and quantity variances), it is vital that you do not simply learn formulae. You must understand what your calculations are supposed are supposed to show. |

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