184 when a company sells more than one product it does not have a unique breakeven p 4308089

184 when a company sells more than one product it does not have a unique breakeven p 4308089

184) When a company sells more than one product, it does not have a unique breakeven point.

185) The weighted average contribution margin will always be the same as the contribution margin of the highest-volume product.

186) If a company sells 13 of Product A for every 3 of Product B that it sells, the sales mix can be stated as

A) 13:3.

B) 13/16 A and 3/16 B.

C) both “13:3″ and ” 13/16 A and 3/16 B” are correct.

D) neither “13:3″ nor ” 13/16 A and 3/16 B” is correct.

187) If a company sells 15 of Product A for every 2 of Product B that it sells, the sales mix can be stated as

A) 15:2.

B) 15/17 A and 2/17 B.

C) neither “15:2″ nor ” 15/17 A and 2/17 B” is correct.

D) both “15:2″ and ” 15/17 A and 2/17 B” are correct.

188) Fixed costs divided by weighted average contribution margin per unit equals

A) breakeven sales in units.

B) margin of safety ratio.

C) breakeven sales in dollars.

D) contribution margin ratio.

189) Contribution margin less fixed costs yields

A) sales.

B) operating income.

C) variable costs.

D) none of the above.

190) Gabe Industries sells two products, Basic models and Deluxe models. Basic models sell for $42 per unit with variable costs of $30 per unit. Deluxe models sell for $50 per unit with variable costs of $40 per unit. Total fixed costs for the company are $75,400. Gabe Industries typically sells four Basic models for every Deluxe model. What is the breakeven point in total units?

A) 6,500 units

B) 3,900 units

C) 9,921 units

D) 5,953 units

191) Mayfield Company sells two products, Blue models and Plaid models. Blue models sell for $45 per unit with variable costs of $30 per unit. Plaid models sell for $50 per unit with variable costs of $25 per unit. Total fixed costs for the company are $19,950. Mayfield Company typically sells two Blue models for every three Plaid models. What is the breakeven point in total units?

A) 190 units

B) 266 units

C) 950 units

D) 2,217 units

192) Barkley Company sells two products, red cups and black mugs. Barkley predicts that it will sell 2,500 red cups and 1,000 black mugs in the next period. The unit contribution margins for red cups and black mugs are $2.80 and $3.50, respectively. What is the weighted average unit contribution margin?

A) $2.33

B) $7.00

C) $3.00

D) $1.00

193) Madden Enterprises sells two products, Silver models and Gold models. Madden Enterprises predicts that it will sell 6,000 Silver models and 4,000 Gold models in the next period. The unit contribution margins for Silver models and Gold models are $75 and $150, respectively. What is the weighted average unit contribution margin?

A) $0.01

B) $37.50

C) $105.00

D) $525.00

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