Sales mix refers to the proportion in which different products are sold. It is an important concept in sales and marketing as it directly affects the overall revenue and profitability of a business. The correct statement is that sales mix is the proportion in which two or more products are sold (Option A is true).

Explanation:
Sales mix is the relative distribution or proportion of different products or services that a company sells. It is a measure of how much each product contributes to the total sales revenue. The sales mix can vary depending on various factors such as customer preferences, market demand, pricing strategies, and promotional activities.

Importance of Sales Mix:
Understanding and managing the sales mix is crucial for businesses as it has a direct impact on their profitability and growth. Here are a few reasons why sales mix is important:

1. Revenue Generation: By analyzing the sales mix, businesses can identify their top-selling products and focus on increasing their sales. This helps in generating higher revenue and maximizing profitability.

2. Cost Management: Different products may have different costs associated with them, including production, distribution, and marketing expenses. By analyzing the sales mix, businesses can identify the products that have higher profit margins and allocate their resources accordingly.

3. Product Development: Analyzing the sales mix can also help businesses identify gaps in their product portfolio. It provides insights into customer preferences and market trends, which can be used to develop new products or modify existing ones to meet customer demands.

4. Pricing Strategy: The sales mix can also influence pricing decisions. Products with higher demand and lower competition can be priced higher, while products with lower demand or higher competition may require competitive pricing strategies to attract customers.

5. Marketing and Promotions: The sales mix can guide businesses in developing targeted marketing campaigns and promotions. By understanding which products are selling well and which are not, businesses can allocate their marketing budget effectively and design strategies to boost the sales of specific products.

Conclusion:
Sales mix is the proportion in which two or more products are sold. It is an important concept for businesses to understand and manage as it directly impacts their revenue, profitability, and overall growth. Analyzing the sales mix helps businesses make informed decisions regarding pricing, product development, marketing, and resource allocation.