pany 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? *

pany 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? *

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3EA: A product has a sales price of $150 and a per-unit contribution margin of $50. What is the...

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A product has a sales price of $150 and a per-unit contribution margin of $50. What is the contribution margin ratio?
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