Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

Exercise 56

An executive of a large American steel company put the blame for lower net income for a recent fiscal period on the "shift in product mix to a higher proportion of export sales." Sales for the period increased slightly while net income declined by 28 percent. Explain how a change in product (sales) mix to a higher proportion in export sales could result in a lower level of net income.