Snyder, Inc. manufactures three types of golf balls; the Worm-burner, the Escala

Question

Snyder, Inc. manufactures three types of golf balls; the Worm-burner, the Escalator, and the Slice. Over the past year, variable expenses (related to sales price) have been 32%, 40%, and 20%, respectively. Sales prices per 6-pack have been $20, $25, and $30, respectively and sales by golf ball (as a percentage of total sales) have been 40%, 30%, and 40%. Which of the following is the best description of the sales mix?

Select one:

a. The three types of golf balls sold by Snyder, Inc.

b. The relationship of variable expenses to sales price

c. The sales price per 6-pack

d. Sales by golf ball type as a percentage of total sales

Explanation / Answer

Answer d is correct.

Sales mix is a ratio of products sold. In this case, sales by golf ball type as a percentage of total sales is the sales mix as it shows the ratio of product sold.

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