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Which of the following statements regarding a company's sales mix is not true? A shift in the sales mix from products with high contribution margin
Which of the following statements regarding a company's sales mix is not true?
A shift in the sales mix from products with high contribution margin ratios to products with low contribution margin ratios will result in a decrease in operating income.
The costvolumeprofit analysis model assumes that a company's sales mix will remain constant as sales volume increases or decreases.
For purposes of performing costvolumeprofit analysis, the overall contribution margin is defined as the simple average of each product line's contribution margin ratio.
A shift in the sales mix from products with high contribution margin ratios to products with low contribution margin ratios will increase the breakeven point for the company.
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