Select the Incorrect Statement Regarding Cost-Volume-Profit Relationships for Multiple Products

Multiple Choice

Select the incorrect statement regarding cost-volume-profit relationships for multiple products.

A) For a company that sells many different products, the level of the break-even point is affected by the company's sales mix.
B) An increase in sales volume accompanied by a change in sales mix could cause a company's profits to decrease.
C) For a multi-product company, cost-volume-profit analysis can be done using the contribution margin ratio of the most profitable product.
D) None of these answers is correct.