Total contribution margin
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Each of a company's several product lines has a different contribution margin ratio. Total sales in 2004 were 20% higher than total sales in 2003. Total contribution margin for 2004 will be:
the same as it was in 2003, regardless of changes in sales mix.
20% higher than it was in 2003, regardless of changes in sales mix.
more than 20% higher than it was in 2003, if the sales mix changes and proportionately more high contribution margin ratio products are sold in 2004 than in 2003.
less than 20% higher than it was in 2003, if the sales mix changes and proportionately more high contribution margin ratio products are sold in 2004 than in 2003
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Total contribution margin is figured.
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Since the 20% increase in sales may come from different lines with different ...
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