Determining Sales Mix
More often than not, a company manufactures or offers for sale several product lines. In these cases, you should consider the sales and costs value of each of those product lines as you analyze the company's sales as a whole.
For example, suppose that a company sells three product lines. A side-by-side view of each of these products' price and cost information is a valuable way to analyze each product's impact on the bottom line. For a sample analysis, see Figure 19.12.
Figure 19.12. The sales mix analysis focuses on contribution margins for each type of product sold.
A sales mix analysis helps you understand the relative ...
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