Which of the following statements regarding sales mix is accurate?
A) Sales mix is a necessary piece of information when calculating fixed costs.
B) Sales mix is an important concept for a company that specializes in only one product.
C) In order to use sales mix in a break-even analysis, the percentages of sales of the individual products, when added together, must total 100%.
D) When calculating break-even for a company with multiple products, the sales mix and the weighted average contribution margin (WACM) do not need to be known.

Question

Quizplus · Accepted Answer

Sales mix is expressed as a ratio or percentage and shows how much each product or product line contributes to overall sales. Overall sales are represented at 100%, and each individual product's sales is a portion, or percentage, of this total. When added together, the individual products' sales percentages will total 100% of the firm's sales.

Which of the Following Statements Regarding Sales Mix Is Accurate