Plastic Gym Makes Children's Jungle Gyms and Tree Houses

Multiple Choice

Plastic Gym makes children's jungle gyms and tree houses. The price of jungle gyms is $120, and its variable expenses are $90 per unit. The price of tree houses is $200, and its variable expenses are $100. Total fixed expenses are $253,750. Last year, Plastic Gym sold 12,000 gyms and 4,000 tree houses.
-Refer to the Figure.Plastic Gym expects tree house demand to increase from 4,000 to 8,000 units per year.What is the new contribution margin ratio?

A) 38%
B) 40%
C) 50%
D) 60%