If the Proportions in a Sales Mix Change, The

question 62

Multiple Choice

If the proportions in a sales mix change, the:

• A) break- even point will remain the same
• B) net income will not be altered
• C) cost- volume- profit relationship also changes
• D) contribution margin per unit increases

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Definitions:

Breakeven Point

The point at which total costs and total revenues are equal, meaning a business neither makes a profit nor incurs a loss.

Unit Level

A classification in costing referring to activities or costs that are directly associated with the units of product produced.

Environmental Management Accounting

The management of environmental and cost information to improve business decisions related to environmental performance.

Environmental Breaches

Instances where activities or actions violate environmental laws, regulations, or standards, potentially causing harm to the environment.