If the Proportions of Different Products Sold in a Sales

question 85

Multiple Choice

If the proportions of different products sold in a sales mix change,the ________.

• A) contribution margin per unit for each product increases
• B) break-even point will change
• C) contribution margin per unit for each product decreases
• D) net income will not change

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Definitions:

Gilts

Government bonds issued by the United Kingdom, considered low-risk investments since they are backed by the British government.

Unbiased Forward Rates

Interest rates or currency exchange rates that are equal to the expected future spot rates, implying no arbitrage opportunities.

Exchange Rate

The exchange rate reflecting the value of one currency compared to another.

Spot Exchange Rate

This is the current exchange rate at which two currencies can be exchanged immediately.