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In a multi-product company, as the mix of the products being sold changes, the overall contribution margin ratio will also change. If the shift in mix is toward the less profitable products, then the contribution margin ratio will * fall rise O not change O change in direct proportion to break-even point

In a multi-product company, as the mix of the products being sold changes, the overall contribution margin ratio will also change. If the shift in mix is toward the less profitable products, then the contribution margin ratio will * fall rise O not change O change in direct proportion to break-even point

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In a multi-product company, as the mix of the products being sold changes, the overall contribution margin ratio will also change. If the shift in mix is toward the less profitable products, then the contribution margin ratio will * O fall rise O not change O change in direct proportion to break-even point
Transcribed Image Text:In a multi-product company, as the mix of the products being sold changes, the overall contribution margin ratio will also change. If the shift in mix is toward the less profitable products, then the contribution margin ratio will * O fall rise O not change O change in direct proportion to break-even point
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