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Other Fields Homework Help Accounting Topic started by: gabbywabbi on Jul 1, 2018



Title: In multiproduct situations when sales mix shifts toward the product with the highest contribution ...
Post by: gabbywabbi on Jul 1, 2018
In multiproduct situations when sales mix shifts toward the product with the highest contribution margin, operating income will be higher.
[True or False]


Title: In multiproduct situations when sales mix shifts toward the product with the highest contribution ...
Post by: lcuunliffe on Jul 1, 2018
 False
Explanation:  This may not always be the case. There could be some sales mixes where the product with the higher contribution margin has increased in units in the sales mix and the operating income would be the same as before (not be highter).


Title: In multiproduct situations when sales mix shifts toward the product with the highest contribution ...
Post by: gabbywabbi on Jul 1, 2018
:arrow_up: Correct again