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Think about revenue and the sales mix. Net income will be: Greater if more high contribution margin units are sold than low contribution margin units.
Think about revenue and the sales mix. Net income will be:
Greater if more high contribution margin units are sold than low contribution margin units.
Greater if more low contribution margin units sold in high contribution margin units.
Unaffected by the sales mix as long as a total revenue remains constant.
Lower if more high contribution margin units are sold than low contribution margin units.
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