Home Solutions sells three different products that are similar, but are differentiated by various product features.Budgeted sales by product and in total for the coming year are shown below:

Product

Standard

Deluxe

Premium

Total

Percentage of total sales

58%

10%

32%

100%

Sales

$120,000

$50,000

$80,000

$250,000

Less: variable costs

36,000

40,000

44,000

120,000

Contribution margin

$84,000

$10,000

$36,000

$130,000

Less: fixed expenses

$117,000

Net operating income

$13,000

If the actual percentage of sales for the year were Standard, 50%; Deluxe, 40%; and Premium, 10%, than:

A. The overall contribution margin would increase and the break-even sales would decrease.

B. The overall contribution margin would decrease and the break-even sales would increase.

C. The overall contribution margin would increase and the break-even sales would increase.

D. The overall contribution margin would decrease and the break-even sales would decrease.