Select the Incorrect Statement Regarding Cost-Volume-Profit Relationships for Multiple Products

question 122

Multiple Choice

Select the incorrect statement regarding cost-volume-profit relationships for multiple products.

• A) For a company that sells many different products, the level of the break-even point is affected by the company's sales mix.
• B) An increase in sales volume accompanied by a change in sales mix could cause a company's profits to decrease.
• C) For a multi-product company, cost-volume-profit analysis can be done using the contribution margin ratio of the most profitable product.
• D) None of these answers is correct.