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:

Organizational Lines

The hierarchical structure and division of roles within an organization.

Construction Firms

Companies specializing in the construction of buildings, infrastructure, and other physical structures.

Work Breakdown Structure

A hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish project objectives and create the required deliverables.

Project Management Tools

Software or methodologies used by project managers to assist in the planning, execution, tracking, and completion of projects.