Please use specific examples from a company for instance, for Bank of America What are the assumptions underlying sales mix and cost volume profit that are potentially misleading? The overall concept of a contribution margin is pretty straightforward- it is how much each unit contributes to covering fixed costs and eventually, profit. Instead, let’s talk about sales mix. This relates to the mix of products. How do changes in the mix of products impact breakeven? How could a shift in sales mix result in both a higher breakeven point and a lower net income?
Select any revenue streem.