Reference: 08-09
Fletcher Company Has Three Products with the Following

Reference: 08-09
Fletcher Company has three products with the following characteristics: $$\begin{array} { | l | l | l | l | } \hline & \text { Product A } & \text { Product B } & \text { Product } \text { C } \\\hline \text { Monthly sales in dollars } & \$ 60,000 & \$ 80,000 & \$ 100,000 \\\hline \text { Contribution margin ratio } & 20 \% & 40 \% & 16 \% \\\hline\end{array}$$
-If total units sold remain unchanged, but the sales mix shifts more heavily toward Product C, one would expect the overall contribution margin ratio to:

A) remain unchanged.
B) decrease.
C) increase.
D) none of these.

Correct Answer:

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