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There is actually an answer for this question but from two different sources and both gave different answer
Colin Drury textbook:
Contribution/sales (%) = (0.33 * 40% Aye) + (0.33 * 50% Bee) + (0.33 * ? Cee) = 48%
Cee = 54% (Balancing figure)
The total contribution/sales ratio for the revised sales mix is: (0.40 * 40% Aye) + (0.25 * 50% Bee) + (0.35 * 54% Cee) + 47.4%
Answer (c)From the internet:
Answer B.
This is a classic of encountering an unfamiliar term, but the solution is similar to other problems. Contribution to sales ratio is basically contribution margin ratio, and all it is asking you for is getting the weighted average contribution margin ratio, similar to multiple product CVP analysis.
40% x 40% + 25% x 50 % + 35% x 48% = 45.3%There is actually an answer for this question but from two different sources and both gave different answer
Colin Drury textbook:
Contribution/sales (%) = (0.33 * 40% Aye) + (0.33 * 50% Bee) + (0.33 * ? Cee) = 48%
Cee = 54% (Balancing figure)
The total contribution/sales ratio for the revised sales mix is: (0.40 * 40% Aye) + (0.25 * 50% Bee) + (0.35 * 54% Cee) + 47.4%
Answer (c)From the internet:
Answer B.
This is a classic of encountering an unfamiliar term, but the solution is similar to other problems. Contribution to sales ratio is basically contribution margin ratio, and all it is asking you for is getting the weighted average contribution margin ratio, similar to multiple product CVP analysis.
40% x 40% + 25% x 50 % + 35% x 48% = 45.3%
