71.A transition from low-margin sales to high-margin sales

a.may increase net income, even though there is a decrease in complete units sold.

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b.will always increase network income.

c.will always decrease net income.

d.will constantly decrease devices sold.

              72.A change from high-margin sales come low-margin sales

a.may decrease network income, even though over there is rise in complete units sold.

b.will always decrease network income.

c.will constantly increase network income.

d.will constantly increase units sold.

Use the following information for concerns 73 and 74.

MacCloud Industries has two divisions—Standard and Premium. Each department has hundreds of different species of tennis racquets and tennis products. The following information is available:

Standard DivisionPremium Division   Total 


Variable costs  280,000  360,000

Contribution margin$120,000$240,000

Total fixed costs$270,000

              73.What is the weighted-average contribution margin ratio?





              74.What is the break-even allude in dollars?





              75.The sales mix percentages because that Novotna’s Boston and Seattle departments are 70% and 30%. The donation margin ratios are: Boston (40%) and Seattle (30%). Fixed expenses are $888,000. What is Novotna’s break-even allude in dollars?





76.A agency can sell all the devices it can produce of one of two people Product A or Product B however not both. Product A has actually a unit donation margin that $16 and takes two device hours come make and Product B has a unit contribution margin of $30 and takes three device hours come make. If there space 2,000 device hours easily accessible to manufacture a product, earnings will be

a.$4,000 much more if Product A is made.

b.$4,000 much less if Product B is made.

c.$4,000 less if Product A is made.

d.the exact same if either product is made.

              77.Brooks Corporation deserve to sell all the units it can create of either level or sophisticated but not both. Plain has a unit donation margin of $120 and also takes two device hours to make and fancy has a unit contribution margin that $150 and takes three an equipment hours to make. There space 2,400 an equipment hours obtainable to manufacture a product. What have to Brooks do?

a.Make fancy which creates $30 an ext profit every unit than plain does.

b.Make level which create $10 an ext profit per device hour than sophisticated does.

c.Make plain because more units can be made and sold than Fancy.

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d.The same total profits exist regardless of i m sorry product is made.

              78.What is the vital factor in identify sales mix if a agency has limited resources?

a.Contribution margin every unit of limited resource

b.The amount of fixed prices per unit

c.Total donation margin

d.The expense of minimal resources

              79. Greg’s Breads deserve to produce and also sell only one of the adhering to two products:


Hours RequiredMargin per Unit


Coffee Cakes0.3$4

The firm has range capacity that 900 hours. Just how much will contribution margin be if it produces just the most rewarding product?





80.Curtis Corporation’s donation margin is $15 every unit because that Product A and $18 because that Product B.  Product A calls for 2 machine hours and also Product B requires 4 maker hours. Just how much is the donation margin every unit of limited resource because that each product?