A Firm Selling Three Products Has the Following Data If the Firm Can Change the Sales Mix from 60,000

question 19

Multiple Choice

A firm selling three products has the following data: $\begin{array}{llll}\text { Unit}&\text { Unit Variable }\\\text { Product }&\text {Sales Mix }&\text {Price }&\text {cost }\\P & 60,000 \text { units } & \$ 40 & \$ 20 \\Q & 40,000 \text { units } & 60 & 30 \\R & 20,000 \text { units } & 30 & 15\end{array}$ If the firm can change the sales mix from 60,000 P, 40,000 Q, and 20,000 R to 60,000 P, 20,000 Q, and 40,000 R, pre-tax income will be:

• A) Lower
• B) Higher
• C) Unchanged
• D) Cannot be determined

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