$12$ Oula

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T$8$ MC Qu$.12\mathrm{.}71$ Mix Masters, Incerporated, currently selis Product...

Mix Masters, incorporated, currently sella Preduct A and Product $B$ in the following annual sales $m$ expects that sales of Broduct A will increase by $60\%$ and sales of Product B will decrease by $33\mathrm{.}33$ will remain unchanged for next year as witl total fixed costs of $$700\mathrm{.}000$

Product A Product $8$ Total Sales

Current

Sales Mix

$$40,000$

$$60,000$

$$100,000$

Sales Mix shift

$$60,000$

$48,000$

$160,000$

CM Ratio

$258$

The impact on operating income for Mix Masters, Incorporated, because of the shift in sales mix

Multiple Choice

$$5\mathrm{.}000$ increase.

$$5\mathrm{.}000$ decrease.