Discussion

 Respond to the following in a minimum of 200 words:

An executive of a large steel company put the blame for lower net income for a recent fiscal period on the “shift in product mix to a higher proportion of export sales.” Sales for the period increased slightly while net income declined by a percent such as 25%.

Explain how a change in product (sales) mix to a higher proportion in export sales could result in a lower level of net income.