If the proportions of different products in a sales mix change,the ________.
A)contribution margin per unit for each product increases
B)break-even point will change
C)contribution margin per unit for each product decreases
D)net income will not change

Question

Quizplus · Accepted Answer

The break-even point depends on the sales mix, so if the proportions of different products in a sales mix change, the break-even point will also change. The contribution margin per unit for each product may increase or decrease depending on the change in the sales mix, but this alone does not determine the effect on the break-even point or net income. The net income may also change depending on the change in the sales mix and the fixed costs associated with producing each product.

If the Proportions of Different Products in a Sales Mix