Ask Question
BusinessBusiness
18 May, 02:36

In a sales mix situation, at any level of units sold, net income will be higher if:

a. more lower contribution margin units are sold than higher contribution margin units.

b. more higher contribution margin units are sold than lower contribution margin units.

c. weighted-average unit contribution margin decreases.

d. more fixed expenses are incurred.

+2
Answers (1)
  1. 18 May, 03:26
    0
    b. more higher contribution margin units are sold than lower contribution margin units.

    Explanation:

    Contribution margin is that percentage of sales revenue which is received after deducting the variable cost of the product. This is basically covering fixed cost.

    As soon as fixed cost is covered by contributing margin the income starts arising.

    Therefore, the company shall sale those which have higher contribution margin, as this will cover fixed cost more fast.

    Thus, sales of goods with high contribution margin in a sales mix assures high net income.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In a sales mix situation, at any level of units sold, net income will be higher if: a. more lower contribution margin units are sold than ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which of the following is correct for Qualified Tuition Programs? a. Contributions are deductible and qualified educational expense distributions are tax-free. b.
Answers (1)
Sarah, a manager at Ackles Inc, plays pranks on her subordinates in an attempt to make the workplace livelier. She trusts her subordinates and does not care much about the quality of their work.
Answers (2)
Ou are planning to save for retirement over the next 35 years. to do this, you will invest $770 per month in a stock account and $370 per month in a bond account. the return of the stock account is expected to be 9.
Answers (1)
Stocks with higher than average potential to increase in value are referred to as what?
Answers (1)
Receiving 3% commission on sales how much would i have to sell to make $300,000
Answers (1)
New Questions in Business
Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce ei ther 2 units of corn or 6 units of wheat per year. Each nation has 10 workers.
Answers (1)
How can business taxes positively affect an economy? A If taxes are low, more businesses can be created. B If taxes are low, then businesses will give more of their earnings away.
Answers (1)
Assume Joe Harry sells his 25% interest in Joe's S Corp., Inc. to Tyrone on January 29. Using the daily allocation method, how much income does Joe Harry report if Joe's S Corp., Inc.
Answers (1)
Whirlwind Financial Corporation sends its executives to a resort in Mexico-at taxpayer's expense-to consider using the firm's cash to buy back its stock and thereby prop up the value. Many of its competitors are doing the same thing.
Answers (1)
LO 7.2Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700 in April, and 2,900 in May.
Answers (1)
Home » Business » In a sales mix situation, at any level of units sold, net income will be higher if: a. more lower contribution margin units are sold than higher contribution margin units. b.
Sign Up Forgot Password?