In order for the break-even computation to be meaningful to management, sales mix should be computed using the
A) expected mix.
B) most desirable mix.
C) least desirable mix.
D) traditional mix.
E) average mix over the past 5 years.

Question

Quizplus · Accepted Answer

Computing the break-even point using the expected sales mix ensures that the management is prepared for the most likely scenario and can plan accordingly. Using the most or least desirable mix may not be realistic and may not provide accurate information for decision-making. The traditional mix or past average mix may not reflect current market conditions and may not be representative of the future.

In Order for the Break-Even Computation to Be Meaningful to Management