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How Does Sales Mix Impact Profits

Question 57

Multiple Choice

How does sales mix impact profits?


A) Profits may decline with an increase in total dollars of sales if the sales mix shifts to sell more of the high-contribution-margin product.
B) Profits may decline with an increase in total dollars of sales if the sales mix shifts to sell more of the lower-contribution-margin product.
C) Profits will remain constant with an increase in total dollars of sales if the total sales in units remain constant.
D) Profits will remain constant with a decrease in total dollars of sales if the sales mix also remains constant.

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