If the sales mix changes, the average contribution margin ratio is likely to change as well.

Name: If the sales mix changes, the average contribution margin ratio is likely to change as well.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The contribution margin ratio is calculated as the total contribution margin divided by the total sales. If the sales mix changes, the contribution margin per unit for each product may change, which can affect the overall average contribution margin ratio. Therefore, it is likely to change.

If the Sales Mix Changes, the Average Contribution Margin Ratio