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

question 34

Multiple Choice

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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