Assuming no change in the level of fixed expenses, the addition to a company's sales mix of a product with a low contribution margin that increases the total contribution margin could also increase the break-even point expressed in pounds.

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When a product with a low contribution margin is added to a company's sales mix, it will bring down the overall contribution margin ratio, which will increase the break-even point expressed in pounds. The contribution margin ratio is calculated by dividing the contribution margin by the total sales revenue, and any changes in the sales mix or the contribution margin will have an impact on this ratio. Therefore, computing the CM ratio and using it to analyze changes in contribution margin and profit is a useful tool for decision-making and planning.

Assuming No Change in the Level of Fixed Expenses, the Addition