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Calculate the company total contribution margin ratio

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Reference no: EM132195267

Question - The following information is for the Jeffries Corporation:

Product A:

Revenue $16.00

Variable Cost $12.00

Product B:

Revenue $24.00

Variable Cost $16.00

Total Fixed Costs $75,000

Assume the sales mix consists of 3 units of Product A and one unit of Product B. If the sales mix shifts to 4 units of Product A and one unit of Product B, than the company's total contribution margin ratio will _____.

A. cannot be determined from the information given.

B. increase

C. decrease.

D. stay the same.

Reference no: EM132195267

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