If the sales mix results in a lower contribution margin percentage, the break even point a....
If the sales mix results in a lower contribution margin percentage, the break even point
| a. |
increases |
|
| b. |
decreases |
|
| c. |
unchanged |
|
| d. |
there is no relationship between contribution margin and sales mix strategy |
Homework Answers
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A shift in sales mix from high contribution margin product to low contribution margin product increases the dollar sales required to break-even.
Hence correct answer is a. INCREASES.
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If the sales mix results in a lower contribution margin
percentage, the break even point
a....
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