Which of the Following Is a TRUE Statement About Sales

question 46

Multiple Choice

Which of the following is a TRUE statement about sales mix?

• A)Profits may decline with an increase in total dollars of sales if the sales mix shifts to sell more of the high contribution margin product.
• B)Profits may decline with an increase in total dollars of sales if the sales mix shifts to sell more of the lower contribution margin product.
• C)Profits will remain constant with an increase in total dollars of sales if the total sales in units remains constant.
• D)Profits will remain constant with a decrease in total dollars of sales if the sales mix also remains constant.

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Definitions:

Markdown

The reduction of the selling price of goods or services, often to clear old stock or respond to decreased demand.

Rubber Boots

Footwear made of rubber, designed to be waterproof, typically used during rainy weather or in wet environments.

Mark-up

A premium added to the cost price of items to compensate for fixed costs and profit.

Dog Kibble

Small, dry pieces of food formulated for dogs' nutritional needs.