In a sales mix situation, at any level of units sold, net income will be higher if more fixed expenses are incurred. more higher contribution margin units are sold than lower contribution margin units. weighted-average unit contribution margin decreases. more lower contribution margin units are sold than higher contribution margin units.

Question

Business

Kareem Holt

17 June, 01:17

In a sales mix situation, at any level of units sold, net income will be higher if more fixed expenses are incurred. more higher contribution margin units are sold than lower contribution margin units. weighted-average unit contribution margin decreases. more lower contribution margin units are sold than higher contribution margin units.

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Answers (1)

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Jerimiah Kirby · Answer 1

at any level of units sold, net income will be higher if more higher contribution margin units are sold than lower contribution margin units.

Explanation:

When products with high margins are sold, profit is made and net income becomes higher. For lower contribution margin units sold to make an impact on the net income, many more units must be sold. However, in cases where units with higher contribution margin are sold, net income is positively affected.