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:

Compounded Monthly

Interest on an investment or loan calculated monthly and added to the principal sum for future interest calculations.

Pay Off

To settle a debt or obligation by making a payment, either in partial settlements or in full, to clear the owed amount.

Car Loan

A car loan is a financial agreement where a lender provides funds to a borrower for the purchase of a vehicle, which is paid back with interest over a set period.

Compounded Monthly

A method of calculating interest where the interest earned is added to the principal each month, and the next month's interest is calculated on this new total.