Each of a company's several product lines has a different contribution margin ratio. Total sales in 2017 were 20% higher than total sales in 2016. Total contribution margin for 2017 will be:
A) the same as it was in 2016, regardless of changes in sales mix.
B) 20% higher than it was in 2016, regardless of changes in sales mix.
C) more than 20% higher than it was in 2016, if the sales mix changes and proportionately more high contribution margin ratio products are sold in 2017 than in 2016.
D) less than 20% higher than it was in 2016, if the sales mix changes and proportionately more high contribution margin ratio products are sold in 2017 than in 2016.
Correct Answer:
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