Which Is Not True Concerning Sales Mix

question 66

Multiple Choice

Which is not true concerning sales mix?

• A)Sales mix is the relative percentage in which each product is sold when a company sells more than one product.
• B)Sales mix is important to managers because different products often have substantially different contribution margins.
• C)Sales mix does not affect break-even analysis.
• D)The computation of weighted-average unit contribution margin is useful in sales mix analysis.

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Definitions:

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to adjust GDP from nominal to real terms.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in terms of constant prices.

NDP

Net Domestic Product, which is the total value of all goods and services produced within a country in a specific time period, minus depreciation.

GDP

Gross Domestic Product quantifies the overall market worth of every completed good and service produced internally across a country during a certain period.