If the proportions in a sales mix change, the _____.
A)contribution margin per unit increases
B)break-even point will remain the same
C)cost-volume-profit relationship also changes
D)net income will not be altered

Question

Quizplus · Accepted Answer

If the proportions in a sales mix change, the contribution margin per unit may or may not increase, depending on if the products with higher contribution margins are sold more. The break-even point will not remain the same, as it depends on the sales mix and contribution margin of each product. The cost-volume-profit relationship also changes as the sales mix affects the overall sales revenue, variable expenses, and contribution margin ratio. Finally, net income may be altered depending on the effect of the sales mix change on sales revenue and expenses.

If the Proportions in a Sales Mix Change, the _____