In a Sales Mix Situation, at Any Level of Units

question 91

Multiple Choice

In a sales mix situation, at any level of units sold, net income will be higher if

• A) more higher contribution margin units are sold than lower contribution margin units.
• B) more lower contribution margin units are sold than higher contribution margin units.
• C) more fixed expenses are incurred.
• D) weighted-average unit contribution margin decreases.

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Definitions:

Government Payment

Financial transfers made by the government to individuals, firms, or other entities, typically aimed at achieving economic or policy objectives.

Utility Function

A mathematical representation that ranks an individual's preferences for various bundles of goods, reflecting satisfaction or happiness.

Consumption

The use of goods and services by households, contributing to their well-being and satisfaction.

Leisure

Time spent away from work and other compulsory activities, used for relaxation or chosen activities.