Which of the Following Is False

question 72

Multiple Choice

Which of the following is false?

• A)The weighted-average contribution margin of all the products is calculated when determining the break-even sales for a multi-product firm.
• B)If Conan Corporation sells two products with a sales mix of 75%-25%, and the respective contribution margins are $100 and $300, then weighted-average unit contribution margin is $150.
• C)If fixed costs are $100,000 and weighted-average unit contribution margin is $50, then the break-even point in units is 2,000 units.
• D)The weighted-average contribution margin cannot be used to calculate break-even sales for a mix of two or more products.

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Definitions:

Demand

is the quantity of a product or service that consumers are willing and able to purchase at various prices at a given time.

Income Elasticity

The ratio of the percentage change in the quantity demanded of a good to the percentage change in consumer income, used to measure how changes in income affect demand.

Negative

Typically associated with undesirable outcomes or attributes, indicating a deficit or reduction.

Good A

A hypothetical or generic product or service that is used as an example in economic theories or problems.