Final answer:
Sales mix is the proportion of sales volume (option b) for different products a company offers, which impacts the company's total revenue and overall profitability.
Step-by-step explanation:
Sales mix is the proportion of sales volume for various products. It represents how the total sales are divided among the products a company offers. Understanding sales mix is important because it can affect a company's overall profitability. When calculating total revenue, we multiply the price of each product by the quantity of that product sold, and then sum these values for all products.
Total Revenue = Price of Product A × Quantity of Product A + Price of Product B × Quantity of Product B + ... + Price of Product N × Quantity of Product N
Different products may have different profit margins and contribute differently to the overall business. Therefore, companies often analyze their sales mix to optimize their offerings and increase profitability.