L3VLUP

Price-Volume-Mix Analysis

The split of a revenue or margin variance against plan or last year into three causes: price, the change in what each unit sold for, measured on the units actually sold; volume, the change in total units at plan prices and the planned mix; and mix, the effect of selling more of some products and less of others. Done properly the three add up exactly to the total variance, which is how a reader knows nothing has been left out.

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