Net income will be: Greater if more higher-contribution margin units are sold than lower-contribution margin units. Greater if more lower-contribution margin units are sold than higher-contribution margin units. Equal as long as total sales remain equal, regardless of which products are sold. O Unaffected by changes in the mix of products sold. None of the above.
Net income will be: Greater if more higher-contribution margin units are sold than lower-contribution margin units. Greater if more lower-contribution margin units are sold than higher-contribution margin units. Equal as long as total sales remain equal, regardless of which products are sold. O Unaffected by changes in the mix of products sold. None of the above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Net income will be:
Greater if more higher-contribution margin units are sold than lower-contribution margin units.
Greater if more lower-contribution margin units are sold than higher-contribution margin units.
Equal as long as total sales remain equal, regardless of which products are sold.
O Unaffected by changes in the mix of products sold.
None of the above.
Transcribed Image Text:ABC Motorshop calculates its contribution margin to be less than zero. Which statement
is true?
O Its selling price is less than its variable costs.
The company should sell more units.
Its profits are greater than its total costs.
O Its fixed costs are less than the variable cost per unit.
None of the above
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