Which of the following statements is false? a. The contribution margin ratio is particularly valuable in situations in which the dollar sales of one product must be traded off against the dollar sales of another product. b. Products that yield the smallest contribution margin per dollar of sales are the most profitable. c. The contribution margin ratio shows how the contribution margin will be affected by a change in total sales. d. The contribution margin ratio is the contribution margin expressed as a percentage of sales.
Which of the following statements is false? a. The contribution margin ratio is particularly valuable in situations in which the dollar sales of one product must be traded off against the dollar sales of another product. b. Products that yield the smallest contribution margin per dollar of sales are the most profitable. c. The contribution margin ratio shows how the contribution margin will be affected by a change in total sales. d. The contribution margin ratio is the contribution margin expressed as a percentage of sales.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 15MC: If the sales mix in a multi-product environment shifts to a higher volume in low contribution margin...
Related questions
Question
Help question 30
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,