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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Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability, leading to inequality and social tension.

Federal Government

The national government of a federation, responsible for enacting and enforcing laws applicable throughout the entire country.

State-grants

State grants are financial awards provided by state governments to individuals, organizations, or other state entities to support various projects, activities, or needs without any expectation of repayment.