A Firm Selling Three Products Has the Following Data: Unit

question 105

Multiple Choice

A firm selling three products has the following data: Unit Unit Variable
Product Sales Mix Price Cost
P 60,000 units $40 $20
Q 40,000 units 60 30
R 20,000 units 30 15
If the firm can change the sales mix from 60,000 P, 40,000 Q, and 20,000 R to 60,000 P, 20,000 Q, and 40,000 R, pre-tax income will be:

• A)Lower
• B)Higher
• C)Unchanged
• D)Cannot be determined

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Definitions:

Illusion of Popularity

Refers to the phenomenon where an individual overestimates the extent to which their opinions, beliefs, preferences, values, or habits are normal and typical of those of others.

Indirect Pressure

Influence or coercion applied in a non-direct manner, often through hints, suggestions, or the manipulation of information.

Self-Promotion

The act of highlighting one's own skills, accomplishments, or qualities to advance personal or professional goals, often used in job searches or career advancement.

High Cohesiveness

The degree to which members of a group or organization are attracted to each other and motivated to stay in the group.