Lo 3.4explain what a sales mix is and how changes in the sales mix affect the break-even point.

Explanation:

We can define the sales mix as the proportion of products sold in a company. A calculation is made to establish the proportion of sales of a particular product and how profitable it is for a company. The calculation is performed according to the productive capacity of the company and the need of consumers for a given product.

By knowing the sales mix, you can determine the breakeven point, which corresponds to the point at which total cost and total revenue are equal.

When there is a change in the sales mix, it significantly affects the breakeven point because different products have different expenses, contribution margins, and selling price, so any change in the sales ratio of a given product will impact the breakeven point.

answer; ///cells are basic unit of life and thus can regenerate if in a controlled environment;

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: