Question
A company currently sells product A, B and C in equal quantities and at the same selling price per unit. The contribution margin ratio for
A company currently sells product A, B and C in equal quantities and at the same selling price per unit. The contribution margin ratio for product A is 40%, for product B is 50%, and the overall contribution margin ratio for the company is 48%. Suppose that the sales mix changes to 40% A, 25% B, and 35% C, what would be the new overall contribution margin ratio for the company?
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
5th Canadian Edition
1119403995, 9781119403999
