QUESTION 11 Howe Inc. has two product lines, A and B. Product Line A has a higher CM Ratio than Product Line B. A change in the economy causes a shift in sales mix such that customers are now buying relatively more Product B and less Product A. Which of the following statements is true? a. The company's weighted average CM ratio decreased. b. The company's margin of safety increased. The company's fixed costs decreased. d. The company's breakeven point decreased. QUESTION 12 Hayworth Corporation has just segmented last year's income statement into its ten product lines. The chief executive officer (CEO) is curious as to what effect dropping one of the product lines at the beginning of last year would have had on overall company profit. What is the best number for the CEO to look at to determine the effect of this elimination on the net operating income of the company as a whole? a the product line's segment margin minus an allocated portion of common fixed expenses b, the product line's segment margin the product line's contribution margin d. the product line's sales dollars Click Save and Submit to save and submit. Click Save All Answers to save all answers