For a company that sells several products,different sales mixes generally give rise to different break-even sales levels,even if overall sales volume remains unchanged.

Question

Quizplus · Accepted Answer

This is true because different products have different profit margins and contribution margins, which affect the break-even point. If a company sells more of a higher-profit item, the break-even point will be lower than if they sell more of a lower-profit item. Therefore, the sales mix can have a significant impact on the break-even point.

For a Company That Sells Several Products,different Sales Mixes Generally