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Which of the Following Is False

Question 72

Multiple Choice

Which of the following is false?


A) The weighted-average contribution margin of all the products is calculated when determining the break-even sales for a multi-product firm.
B) If Conan Corporation sells two products with a sales mix of 75%-25%, and the respective contribution margins are $100 and $300, then weighted-average unit contribution margin is $150.
C) If fixed costs are $100,000 and weighted-average unit contribution margin is $50, then the break-even point in units is 2,000 units.
D) The weighted-average contribution margin cannot be used to calculate break-even sales for a mix of two or more products.

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