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    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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    https://brainmass.com/business/accounting/total-contribution-margin-accounting-73764

    Solution Preview

    Since the 20% increase in sales may come from different lines with different ...

    Solution Summary

    Total contribution margin is figured.

    $2.19

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