Z plc currently sells products Aye, Bee, and Cee in equal quantities and at the same selling price per unit. The contribution to sares ratio for product Aye is 40%; for product Bee it is 50% and the total is 48%. If fixed costs are unaffected by mix and are currently 20% of sales, the effect of changing the product mix to:
Aye 40%
Bee 25%
Cee 35%
is that the total contribution/total sales ratio changes to:
A 27.4%
B 45.3%
C 47.4%
D 48.4%
E 68.4%