For one month, the data given are: sales revenue = $\$160\,000$, total costs = $\$105\,000$, and variable overheads (which are included within total costs) = $\$26\,000$. In working out the contribution to sales ratio, the book-keeper incorrectly classified the variable overheads as fixed costs. What impact did this have on the contribution to sales ratio?
- A$16.25\%$ too high
- B$16.25\%$ too low
- C$24.76\%$ too high
- D$24.76\%$ too low