Question: A shift from low-margin sales to high-margin sales 1) may increase net income, even though there is a decline in total units sold. 2) will
A shift from low-margin sales to high-margin sales 1) may increase net income, even though there is a decline in total units sold. 2) will always increase net income. 3) will always decrease net income. 4) will always decrease units sold. Margin of safety in dollars it 1) expected sales divided by break-even sales. 2) expected sales less break-even sales. 3) actual sales less expected sales. 4) expected sales less actual sales. A company with a higher contribution margin ratio is 1) more sensitive to changes in sales revenue. 2) less sensitive to changes in sales revenue. 3) either more or less sensitive to changes in sales revenue, depending on other factors. 4) likely to have a lower breakeven point
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