In Multiproduct Situations, When Sales Mix Shifts Toward the Product

question 67

Multiple Choice

In multiproduct situations, when sales mix shifts toward the product with the lowest contribution margin then ________.

• A) total revenues will increase
• B) interest cost will decrease
• C) total contribution margin will increase
• D) operating income will decrease

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Definitions:

Hepaticophyta

A division of non-vascular plants known as liverworts, which are small, herbaceous, and often live in moist environments.

Anthocerophyta

Anthocerophyta is a phylum consisting of hornworts, a group of non-vascular plants that are characterized by their horn-like sporophytes and a simple, thalloid gametophyte.

Club Mosses

Ancient group of non-flowering plants with a vascular system, resembling mosses but genetically closer to ferns.

Lycopodiophyta

A division of vascular plants, also known as clubmosses, that are characterized by their leafy stems and cone-like structures.