If the sales mix at Jeffries Corporation shifts to four units of Product A and one unit of Product B, then the break-even point will

Question

Quizplus · Accepted Answer

When the sales mix shifts to four units of Product A and one unit of Product B, the contribution margin per unit decreases as Product B has a lower contribution margin. As a result, more units need to be sold to cover fixed costs, which increases the break-even point. Therefore, the break-even point will increase.

If the Sales Mix at Jeffries Corporation Shifts to Four