Each of a Company's Several Product Lines Has a Different

question 44

Multiple Choice

Each of a company's several product lines has a different contribution margin ratio.Total sales in 2020 were 20% higher than total sales in 2019.Total contribution margin for 2020 will be:

• A)the same as it was in 2019, regardless of changes in sales mix.
• B)20% higher than it was in 2019, regardless of changes in sales mix.
• C)more than 20% higher than it was in 2019, if the sales mix changes and proportionately more high contribution margin ratio products are sold in 2020 than in 2019.
• D)less than 20% higher than it was in 2019, if the sales mix changes and proportionately more high contribution margin ratio products are sold in 2020 than in 2019.

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