Question
Each of a company's several product lines has a different contribution margin ratio. Total sales in 2014 were 20% higher than total sales in 2013.
Each of a company's several product lines has a different contribution margin ratio. Total sales in 2014 were 20% higher than total sales in 2013. Total contribution margin for 2014 will be:
a. the same as it was in 2013, regardless of changes in sales mix.
b. 20% higher than it was in 2013, regardless of changes in sales mix.
c. more than 20% higher than it was in 2013, if the sales mix changes and proportionately more high contribution margin ratio products are sold in 2014 than in 2013.
d. less than 20% higher than it was in 2013, if the sales mix changes and proportionately more high contribution margin ratio products are sold in 2014 than in 2013.
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