In a Sales Mix Situation, at Any Level of Units

question 91

Multiple Choice

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.

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Definitions:

Earnings Performance

An evaluation of a company's profitability over a specific period, often analyzed through metrics like EPS (earnings per share).

Accounting Period

A specific period of time used for accounting purposes, during which financial statements are prepared.

Income Statement

An Income Statement is a financial report that shows a company's revenues, expenses, and profits over a specific period, providing insight into its financial performance.

Net Income

The amount of profit left after all operating expenses, taxes, and interest payments are deducted from total revenue.