If the sales mix shifts to four units of Product A and one unit of Product B,then the breakeven point will ________.
A) increase
B) stay the same
C) decrease
D) either decrease or remain same

Question

Quizplus · Accepted Answer

The breakeven point will increase because Product A likely has a lower contribution margin compared to Product B, so selling more of Product A and less of Product B reduces the overall contribution margin, requiring more sales to cover fixed costs.

If the Sales Mix Shifts to Four Units of Product