1) All of the following would be considered in evaluating product or sales mix a

Question

1) All of the following would be considered in evaluating product or sales mix allocations,  except

Select one:

a. deciding which product offers the lowest contribution margin per unit.

b. deciding whether fixed costs would change as a result of the product sales mix.

c. deciding upon any and all constraints associated with the product/sale mix.

d. deciding which products will contribute the highest contribution margin per unit.

2)

In making the decision whether to sell a product as is or process the product further, the expected income from selling the product as is may be defined as which of the following?

Select one:

a. The opportunity cost of processing the product further

b. A sunk cost of processing the product further

c. The opportunity cost of selling the product as is

d. A limiting factor in processing the product further

35)

Which of the following would be a consideration for "sell as is or process further" decisions?

Select one:

a. Revenue generated if sold "as is"

b. Revenue generated if "further processed"

c. Costs involved in further processing

d. All of these

38)

Select one:

a. $2,800 net decrease in operating income

b. $5,000 net decrease in operating income

c. $5,000 net increase in operating income

d. $2,800 net increase in operating income

Explanation / Answer

Answer:1 c. deciding upon any and all constraints associated with the product/sale mix.

because all other are important in sales mix.

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