Concept explainers
If the sales mix in a multi-product environment shifts to a higher volume in low contribution margin products, the break-even point will ____________________________________ .
A. remain unchanged because all products are included in the calculation of break-even
B. increase because the low contribution margin products have little effect on break-even
C. increase because the per composite unit contribution margin will decrease
D. decrease because the per composite unit contribution margin will increase
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