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How can the concept of a composite unit be used to explain why an unfavourable total$$ sales$-$mix variance of contribution margin$$ occurs?

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Part $1$

A$.$

The total$$ sales$-$mix variance arises from differences in the budgeted contribution margin of the actual and budgeted sales mix. The composite unit concept enables the effect of individual product changes to be summarized in a single intuitive number by using weights based on the mix of individual units in the actual and budgeted mix of products sold.

B$.$

The total$$ sales$-$mix variance arises from differences in the budgeted contribution margin of the actual units at the budgeted mix and the contribution margin in the static budget. The composite unit concept enables the effect of individual product changes to be summarized in a single intuitive number by using weights based on the mix of individual units in the budgeted and static mix of products sold.

C$.$

The total$$ sales$-$mix variance arises from differences in the budgeted contribution margin of the budgeted and static sales mix. The composite unit concept enables the effect of all the product changes to be summarized in a grouped intuitive number by using weights based on the mix of all units in the actual and budgeted mix of products sold.

D$.$

The composite unit concept has no impact on an unfavourable total$$ sales$-$mix variance. This concept only impacts the$$ market$-$size variance.

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