FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A shift in the sales mix from products with a low contribution margin ratio towards products with a high contribution margin ratio will lower the

A shift in the sales mix from products with a low contribution margin ratio towards products with a high contribution margin ratio will lower the break even point in the company as a whole.

The answer is True. But why? Can this be proven with a numerical example?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Physical delivery of underlying asset will not happen on the expiry date for a. Stock futures b. Commodity futures c. Index futures d. All of the above

Answered: 1 week ago

Question

★★★★★
Brook Company purchased 70 Meissner Company 12%, 10-year, $1,000 bonds on January 1, 2012, for $73,000. Brook Company also had to pay $500 of brokers fees. The bonds pay interest semiannually on July...

Answered: 1 week ago

Question

★★★★★
You observe a portfolio for five year and determine that its average return is 12.0% and the standard deviation of its returns in 20.0%. Would a 30% loss next year be outside the 95% confidence...

Answered: 1 week ago

Question

★★★★★
(2) Using the following graph, derive the formula for the excess buxden, given by e-P-Q-42 (HINT: start from the formula for the area of interest) Price per pound of barey (1 + 4) PH Tax revenues...

Answered: 1 week ago

Question

★★★★★
Consider the following multifactor (APT) model of security returns for a particular stock. Factor Inflation Industrial production Oil prices Factor Beta Factor Risk Premium 0.9 8% 0.5 0.2 11 7 a. If...

Answered: 1 week ago

Question

★★★★★
A Risk Versus Reward Approach to Market Research Case study 1. What are the pros and cons of each of the three options under consideration? 2. Which option do you think will yield the most long-term...

Answered: 1 week ago

Question

★★★★★
One of your commonly used laboratory instantaneous test signal voltages (vs) is described by the equation... Vs = 8sin (2nft -7) where f = 500 kHz and t, represents time. Make the time t, the subject...

Answered: 1 week ago

Question

★★★★★
Steve's assertion that the muffler sounded like a tank is likely a symptom of _______? 1) posttraumatic stress disorder 2) acute intoxication 3) affect dysregulation 4) avoidant personality disorder

Answered: 1 week ago

Question

★★★★★
Change is a difficult thing to navigate for many people and many organizations, but change is needed to grow. Employees and employers alike need managers to support change and go beyond accepting it...

Answered: 1 week ago

Previous Question Next Question