If the sales mix changes:
A) The fixed costs will change
B) The change in mix affects the contribution margin ratio
C) Nothing else changes
D) Each product's variable cost will change

Question

Quizplus · Accepted Answer

The sales mix affects the contribution margin ratio because each product has a different contribution margin. As the mix changes, the overall contribution margin ratio will also change. This can affect profitability and pricing decisions. The fixed costs and variable costs will remain the same regardless of the sales mix.

If the Sales Mix Changes