q27

Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a lower selling price per unit compared to the Scientific. However, the Basic has a higher contribution margin compared to the Scientific. Due to fixed production capacity, the company has a cap on total production ability. If the company's CEO has decided to shift the sales mix towards producing more Scientific calculators. What would be the effect on total profits? O a. Total profits would remain the same Ob None of the given answers Oc Total profits would decrease Od Total profits would increase O e Cannot be determined using the above information