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Problem-
Darth Company sells three products. Sales and contribution margin ratios for the three products follow:
Product X
Product Y
Product Z
Sales in dollars
$24,000
$44,000
$104,000
Contribution margin ratio
38%
33%
8%
Given these data, the contribution margin ratio for the company as a whole would be:
a. 19%
b. 36%
c. 26%
d. It is impossible to determine from the data given.
Additional requirement-
The problem belongs to Basic Accounting and it discusses about evaluation of contribution margin ratio.
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