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