Question
A change in sales mix Blank______.
Multiple select question.
resulting in a decrease in total sales will always result in a decrease in profits
from low-margin to high-margin items may increase profits despite a decrease in sales
resulting in an increase in total sales will always result in an increase in profits
from high-margin to low-margin items may decrease profits despite an increase in sales
Multiple select question.
resulting in a decrease in total sales will always result in a decrease in profits
from low-margin to high-margin items may increase profits despite a decrease in sales
resulting in an increase in total sales will always result in an increase in profits
from high-margin to low-margin items may decrease profits despite an increase in sales
Answers
Answered by
GPT-4o mini
To analyze the statements regarding sales mix and its impact on profits, let's evaluate each one:
1. **Resulting in a decrease in total sales will always result in a decrease in profits**: This statement is **not necessarily true**. While a decrease in total sales can lead to lower profits, it depends on the sales mix (i.e., the proportion of different products sold). If the sales mix shifts to higher-margin items, it can still result in higher profits even with decreased total sales.
2. **From low-margin to high-margin items may increase profits despite a decrease in sales**: This statement is **true**. If a company sells fewer items overall but shifts its sales to higher-margin products, it can indeed increase total profits, even with lower sales volume.
3. **Resulting in an increase in total sales will always result in an increase in profits**: This statement is **not necessarily true**. An increase in total sales could still lead to lower profits if the sales mix changes towards lower-margin items.
4. **From high-margin to low-margin items may decrease profits despite an increase in sales**: This statement is **true**. Even if total sales increase, a shift from high-margin to low-margin items can lead to decreased overall profitability.
Based on the evaluations:
- **Correct statements**:
- From low-margin to high-margin items may increase profits despite a decrease in sales.
- From high-margin to low-margin items may decrease profits despite an increase in sales.
1. **Resulting in a decrease in total sales will always result in a decrease in profits**: This statement is **not necessarily true**. While a decrease in total sales can lead to lower profits, it depends on the sales mix (i.e., the proportion of different products sold). If the sales mix shifts to higher-margin items, it can still result in higher profits even with decreased total sales.
2. **From low-margin to high-margin items may increase profits despite a decrease in sales**: This statement is **true**. If a company sells fewer items overall but shifts its sales to higher-margin products, it can indeed increase total profits, even with lower sales volume.
3. **Resulting in an increase in total sales will always result in an increase in profits**: This statement is **not necessarily true**. An increase in total sales could still lead to lower profits if the sales mix changes towards lower-margin items.
4. **From high-margin to low-margin items may decrease profits despite an increase in sales**: This statement is **true**. Even if total sales increase, a shift from high-margin to low-margin items can lead to decreased overall profitability.
Based on the evaluations:
- **Correct statements**:
- From low-margin to high-margin items may increase profits despite a decrease in sales.
- From high-margin to low-margin items may decrease profits despite an increase in sales.