CVP Analysis with Multiple Products Assumes That Sales Will Continue

question 67

Multiple Choice

CVP analysis with multiple products assumes that sales will continue at the same mix of products,expressed in either sales units or sales dollars.This assumption is essential,because a change in the product mix will probably change:

• A)The average sales price.
• B)The average variable cost.
• C)The weighted-average contribution margin.
• D)The total fixed cost.

---

Definitions:

Previous Cell

Refers to the cell immediately above or to the left of the current cell in a spreadsheet or grid-like layout.

Insertion Point

The cursor location in a text field or document where new text will be entered or inserted.

Formatting Mark

Invisible characters that represent spaces, tabs, paragraph breaks, and other layout elements in a document, which can be displayed for editing purposes.

Word Table

A feature within Microsoft Word that allows the creation and manipulation of tables to organize data in rows and columns.