Each of a Company's Two Product Lines Has a Different

question 25

Multiple Choice

Each of a company's two product lines has a different contribution margin ratio. If the company's total sales remain the same but the sales mix shifts toward selling more of the product with the higher contribution ratio, which of the following is true?

• A) Operating income will increase.
• B) The average contribution margin ratio will increase.
• C) The break-even point will decrease.
• D) All of these are true.

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Definitions:

Brittle Conditions

Circumstances under which materials or rocks break or fracture without significant plastic deformation when subjected to stress.

Relatively Shallow

Describes an area of water or feature that is not deep compared to its surroundings.

Fracturing

The act or process of breaking or cracking solid materials, often referring to rocks splitting due to physical, chemical, or mechanical forces.

Brittle Conditions

Scenarios in which rocks fracture or break apart rather than deform plastically when subjected to stress, typically occurring at shallower depths.