In a sales mix situation, at any level of units sold, net income will be higher if
A) more higher contribution margin units are sold than lower contribution margin units.
B) more lower contribution margin units are sold than higher contribution margin units.
C) more fixed expenses are incurred.
D) weighted-average unit contribution margin decreases.

Question

Quizplus · Accepted Answer

Selling more higher contribution margin units will result in a higher overall contribution margin, which will lead to a higher net income. Conversely, selling more lower contribution margin units will result in a lower overall contribution margin and lower net income.

In a Sales Mix Situation, at Any Level of Units