Blackbird Company has annual fixed costs of $180,000 and a company-wide contribution margin ratio of...
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Accounting
Blackbird Company has annual fixed costs of $180,000 and a company-wide contribution margin ratio of 40%. Based on this information, answer the following question.
Q. Blackbirds Sales Manager has proposed a marketing strategy that would not increase overall revenues or affect fixed costs, but would shift the sales mix to sell more of a product line with a 38% CMR and less of a product line with a 44% CMR. Critique this proposal.
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