Pelican Co.sells two products, A and Z.Product A's contribution margin per unit is lower than Product Z's contribution margin per unit.However, Product A's contribution margin ratio is higher than Product Z's contribution margin ratio.If Pelican begins to sell more units of Product A and fewer units of Product Z, its
A) sales mix will remain unchanged.
B) breakeven point will be higher than it was previously
C) breakeven point will be lower than it was previously.
D) the selling price will increase..
Correct Answer:
Verified
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