Each of a Company's Two Product Lines Has a Different

question 12

Multiple Choice

Each of a company's two product lines has a different contribution margin ratio. If the company's total sales remain the same but the sales mix shifts toward selling more of the product with the higher contribution ratio, which of the following is true?

• A) operating income will increase.
• B) the average contribution margin ratio will increase.
• C) the break-even point will decrease.
• D)all of the above are true.

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Definitions:

Neural Processing

The method by which the nervous system receives, interprets, and responds to signals from the sensory organs or other neural inputs.

Automatic Emotional Responses

Immediate and unconscious emotional reactions to certain stimuli or situations without deliberate thought.

Joseph LeDoux

A neuroscientist known for his work on survival circuits, including mechanisms of fear and emotion in the brain.

Cognitive Reactions

Mental processes as responses to external stimuli, involving perception, memory, judgment, and reasoning.