In a Multi-Product Environment

question 57

Multiple Choice

In a multi-product environment:

• A) cost-volume-profit analysis is not advisable to use.
• B) only the product with the highest contribution margin should be sold.
• C) the product with the highest sales prices per unit should account for the majority of the sales.
• D) a weighted-average contribution margin per unit should be computed for all products produced and sold.

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