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Is that the total contribution-total sales ratio changes to

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Reference no: EM13506662

Z plc currently sells products Aye, Bee, and Cee in equal quantities and at the same selling price per unit. The contribution to sares ratio for product Aye is 40%; for product Bee it is 50% and the total is 48%. If fixed costs are unaffected by mix and are currently 20% of sales, the effect of changing the product mix to:

Aye 40%
Bee 25%
Cee 35%

is that the total contribution/total sales ratio changes to:

A 27.4%
B 45.3%
C 47.4%
D 48.4%
E 68.4%

Reference no: EM13506662

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