IMA Shop Ltd Produces Three Products Using Revenue as the Measure for Sales Mix, Calculate IMA

question 58

Multiple Choice

IMA Shop Ltd produces three products. Cost, price, and volume data is shown below:
* Total Fixed Costs: $2,400
* ax Rate: 30%
$$\begin{array} { | l | l | l | l | } \hline & \text { Chacolate Ice Creamn } & \text { Milkthale } & \text { Furger } \\\hline \text { Narmal Valume } & 300 & 150 & 200 \\\hline \text { Price per unit } & \$ 5 & \$ 7 & \$ 10 \\\hline \text { Var iable cast per unit } & \$ 2 & \$ 3 & \$ 4 \\\hline\end{array}$$ Using revenue as the measure for sales mix, calculate IMA Shop's breakeven point in units for each product.

• A) Chocolate ice creams 190; Milkshakes 133; Burgers 254.
• B) Chocolate ice creams 300; Milkshakes 150; Burgers 200.
• C) Chocolate ice creams 150; Milkshakes 133; Burgers 254.
• D) Cannot be determined

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Definitions:

MMPI

The Minnesota Multiphasic Personality Inventory, a standardized psychometric test of adult personality and psychopathology.

Demand Characteristics

Subtle cues or signals in an experiment that communicate to participants how they are expected to behave or respond.

Overconfidence Effect

A cognitive bias where an individual's subjective confidence in their judgments is greater than the objective accuracy of those judgments.

Social Desirability Bias

The tendency of respondents to answer questions in a manner that will be viewed favorably by others, often skewing the results of surveys and studies.