If the proportions of different products sold in a sales mix change,the ________.
A) contribution margin per unit for each product increases
B) break-even point will change
C) contribution margin per unit for each product decreases
D) net income will not change

Question

Quizplus · Accepted Answer

The break-even point is the level of sales at which a company earns zero income. If the sales mix changes, the contribution margin per unit of each product may change, which affects the overall contribution margin ratio. The break-even point is determined by dividing the company's fixed costs by the contribution margin ratio, so if the ratio changes, the break-even point will also change.

If the Proportions of Different Products Sold in a Sales