Each of a company's two product lines has a different contribution margin ratio.If the company's total sales remain the same but the sales mix shifts toward selling more of the product with the lower contribution ratio, which of the following is true?
A) Operating income will decrease.
B) The average contribution margin ratio will decrease.
C) The breakeven point will increase.
D) All of the answers are true.
Correct Answer:
Verified
Q41: Q42: Production labor wages are an example of Q43: If a firm's fixed costs were increased Q44: ABC Company's sales are $100,000, fixed costs Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents