A higher break-even point and a lower net operating income could result if the sales mix shifted from high contribution
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A higher break-even point and a lower net operating income could result if the sales mix shifted from high contribution
A higher break-even point and a lower net operating income couldresult if the sales mix shifted from high contribution marginproducts to low contribution margin products. Such a shift wouldcause the average contribution margin ratio in the company todecline, resulting in less total contribution margin for a givenamount of sales. Thus, net operating income would decline. With alower contribution margin ratio, the break-even point would behigher because more sales would be required to cover the sameamount of fixed costs. (T/F).