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Mix Masters, Inc., currently sells Product A and Product B in the following annual sales mix. For the coming year the company expects that sales
Mix Masters, Inc., currently sells Product A and Product B in the following annual sales mix. For the coming year the company expects that sales of Product A will increase by 50% and sales of Product B will decrease by 33.3%. Current contribution margin ratios will remain unchanged for next year as will total fixed costs of $700,000 Product A Product B Total Sales eBook Current Sales Mix Sales Mix Shift $ 40,000 $ 60,000 $ 60,000 $ 40,000 $100,000 $100,000 CM Ratio 25% 50% The impact on operating income for Mix Masters, Inc., because of the shift in sales mix is: Multiple Choice $5,000 decrease. $10,000 decrease. $5,000 increase. $10,000 increase
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