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:

Operating Cost

Expenses associated with the day-to-day running of a business, excluding the cost of goods sold.

Soft Infrastructure

Non-physical infrastructure, including institutions, human capital, and societal systems that support economic activities.

Community Receptivity

The level of openness or acceptance that a community shows towards a new idea, product, or initiative.

Business Environment

The combination of internal and external factors that influence a company's operating situation.