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A Firm's Current Products Have Sales of $100,000 and an Average

Question 74

Multiple Choice

A firm's current products have sales of $100,000 and an average contribution margin ratio of 40%.If the firm add a new product with sales of $40,000 and variable costs of $20,000, the firm's new average contribution margin ration will be:


A) 37.8%.
B) 42.9%.
C) 45.0%.
D) 48.7%.

Correct Answer:

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