The sales volume variance is. a. further divided into separate sales quantity and sales mix variances
b. further divided into separate revenue and quantity variances
c. not further divided
d. further divided into separate flexible budget and sales volume variances
e. further divided into separate variable and fixed variances

The correct answer is letter "A": further divided into separate sales quantity and sales mix variances.

Explanation:

The sales volume variance represents the change inf the profit of a company as a result of the changes in the sales volume per unit. It is calculated by subtracting the budgeted sales volume from the actual sales volume and multiplying the result by the budgeted price per unit of the product.

Sales volume variance can be split in sales mix variance and sales quantity variance which are used to evaluate the performance of the marketing department. The sales mix variance represents the performance of the department selling profitable products while the sales quantity variance shows the performance of the marketing department in terms of overall sales volume.

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