A firm's current products have sales of $100,000 and an average contribution margin ratio of 40%. If the firm add a new product with sales of $40,000 and variable costs of $20,000, the firm's new average contribution margin ration will be:

A: 37.8%.

B: 48.7%.

C: 45.0%.

D: 42.9%.

A firm's current products have sales of $100,000 and an average contribution margin ratio of 40%. If the firm add a new product with sales of $40,000 and variable costs of $20,000, the firm's new average contribution margin ration will be: o 378%. o 48.7%. 450% o 42.9%