Multiple Choice
It is critical for management to understand its overall sales mix when using contribution margin income statements because
A) variable cost allocations between products may be difficult to determine.
B) fixed cost allocations between products may be difficult to determine.
C) overhead allocation must be spread evenly across all product lines.
D) different products can have widely differing contribution margins even with the same level of sales.
Correct Answer:

Verified
Correct Answer:
Verified
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