Question
When a company produces and sells multiple products Blank______.
Multiple select question.
a change in the sales mix will most likely change the break-even point
each product most likely has different costs
the sales mix has no effect on the company's profit
each product most likely has a unique contribution margin
Multiple select question.
a change in the sales mix will most likely change the break-even point
each product most likely has different costs
the sales mix has no effect on the company's profit
each product most likely has a unique contribution margin
Answers
GPT-4o mini
When a company produces and sells multiple products, the following statements are true:
1. **A change in the sales mix will most likely change the break-even point** - True. The break-even point is affected by the sales mix, as different products contribute differently to the overall profit.
2. **Each product most likely has different costs** - True. Different products often incur different costs due to differences in materials, labor, and overhead.
3. **The sales mix has no effect on the company's profit** - False. The sales mix does affect the company's profit because the contribution margins of the products vary; thus, changes in the sales mix can change overall profitability.
4. **Each product most likely has a unique contribution margin** - True. Each product typically has its own contribution margin, which is the difference between sales revenue and variable costs for that product.
To summarize, the correct selections are:
- A change in the sales mix will most likely change the break-even point
- Each product most likely has different costs
- Each product most likely has a unique contribution margin.
1. **A change in the sales mix will most likely change the break-even point** - True. The break-even point is affected by the sales mix, as different products contribute differently to the overall profit.
2. **Each product most likely has different costs** - True. Different products often incur different costs due to differences in materials, labor, and overhead.
3. **The sales mix has no effect on the company's profit** - False. The sales mix does affect the company's profit because the contribution margins of the products vary; thus, changes in the sales mix can change overall profitability.
4. **Each product most likely has a unique contribution margin** - True. Each product typically has its own contribution margin, which is the difference between sales revenue and variable costs for that product.
To summarize, the correct selections are:
- A change in the sales mix will most likely change the break-even point
- Each product most likely has different costs
- Each product most likely has a unique contribution margin.