Z plc currently sells products Aye, Bee and Cee in equal quantities and at the same selling
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Z plc currently sells products Aye, Bee and Cee in equal quantities and at the same selling price per unit. The contribution to sales ratio for product Aye is 40%; for product Bee it is 50% and the total is 48%. If fixed costs are unaffected by mix and are currently 20% of sales, the effect of changing the product mix to:
is that the total contribution/total sales ratio changes to:
A 27.4% B 45.3% C 47.4% D 48.4% E 68.4%
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