A shift in the sales mix could result in both a higher break-even point and a lower net income.
The relative proportions in which a company's products are sold are referred to as the sales mix.
If the sales mix shifted from high contribution margin products to low contribution margin products, the break-even point would rise and net operating income would fall.
Such a shift would cause the company's average CM ratio to fall, resulting in less total contribution margin for a given amount of sales.
As a result, net operating income would fall.
The break-even point would be higher with a lower contribution margin ratio because more sales would be required to cover the same amount of fixed costs.
Hence, a shift in the sales mix could result in both a higher break-even point and a lower net income.
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Answer:
1. Increased assets (Cash) – Increased stockholders’ equity (Common Stock)
2. Decreased stockholders’ equity (Rent Expense) - Decreased assets (Cash)
3. Increased assets (Cash) – Increased stockholders’ equity (Service revenue)
4. Increased assets (Accounts receivable) – Increased stockholders’ equity (Service revenue)
5. Decreased liabilities (Cash Dividends Payable) – Decreased assets (Cash)
6. Decreased stockholders’ equity (Advertising Expense) - Increased liabilities (Accounts payable)
7. Increased assets (Cash) – Decreased assets (Accounts receivable)
8. Increased assets (Equipment) – Decreased assets (Cash)
9. Increased assets (Equipment) – Increased liabilities (Accounts payable)
Explanation:
Accounting Equation Formula:
Assets = Liabilities + Owner's Equity
This equation tells us that Assets are increased by Debits and decreased by Credits, instead, Liabilities and Stockholders´ Equity decreased by Debits and increased by Credits. In the answer, Debits are represented by the left side of the note, and Credits by the right side of the note.
Answer:
Option B and C
Explanation:
A query can be run by selecting query option visible through deign view option. After selecting the appropriate option, the query must be run. This shall execute the function for the selected option.
Like wise in data sheet view, one can see the action query before running it.
Hence, option B and C are correct
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