ABU CoHas Several Products, Each with a Different Contribution Margin Ratio

question 79

Multiple Choice

ABU Co.has several products, each with a different contribution margin ratio.If the same number of units were sold in July as in June, but the sales mix changed:

• A)operating income would be the same in June and July.
• B)fixed expenses in July would be in a different relevant range than in June.
• C)the company's overall contribution margin ratio would be the same in June and July.
• D)total contribution margin in July would be different from that in June.

---

Definitions:

Formalization

The degree to which an organization formally documents its policies, procedures, job roles, and regulations in writing.

Decentralization

The distribution of decision-making powers and operational responsibilities away from a central authority to individual units or levels within an organization or system.

External Environment

All external forces or factors that impact an organization's performance, including competition, economy, laws, and social trends.

Diverse Environments

Contexts or settings characterized by a wide range of differences, including cultural, biological, social, and ecological variation.