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:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net income or loss.

Net Income

The final earnings of a company after total revenue has had all taxes and expenses removed.

Current Assets

Assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.

Current Liabilities

Short-term financial obligations that are due within one year or within the entity's operating cycle.