In Multiproduct Situations,when the Sales Mix Shifts Toward the Product

question 67

Multiple Choice

In multiproduct situations,when the sales mix shifts toward the product with the highest contribution margin per unit,then:

• A)total revenues will decrease.
• B)breakeven quantity will increase.
• C)total contribution margin will decrease.
• D)operating income will increase.

---

Definitions:

Capital Production

The creation of goods or services using capital goods, contributing to the productive capacity of an economy.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods and services that can be produced with fixed resources and technology over a given period of time.

Unemployment Rate

A metric that calculates the fraction of the working population that is without a job and seeking employment.

Technology Improvement

Enhancements or innovations in technology that lead to better products, more efficient production processes, or new industries.