Kelly Co Incurs $465,000 in Fixed Costs While Producing Three Products

question 76

Multiple Choice

Kelly Co. incurs $465,000 in fixed costs while producing three products with the following characteristics: $$\begin{array} { | l | c | c | c | } \hline \text { Product } & \text { Sales Mix (units) } & \begin{array} { c } \text { Contribution } \\\text { Mar gin per unit }\end{array} & \begin{array} { c } \text { Contribution } \\\text { Margin Ratin }\end{array} \\\hline \text { Srnall } & 5 & \$ 300 & 25 \% \\\hline \text { Medium } & 3 & \$ 200 & 30 \% \\\hline \text { Larpe } & 2 & \$ 500 & 40 \% \\\hline\end{array}$$ What is the selling price of Small?

• A) $1,200
• B) $400
• C) $800
• D) $1,250

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Definitions:

Amine

Organic molecules and functional units which possess a nitrogen atom with a lone pair, exhibiting basic properties.

Molecules

Groups of atoms bonded together, representing the smallest fundamental unit of a chemical compound that can take part in a chemical reaction.

Sodium Hydride

A chemical compound used as a strong base in organic synthesis, represented by the formula NaH.

Organic Reactions

Chemical reactions involving organic compounds, which are mainly composed of carbon atoms along with hydrogen, oxygen, nitrogen, and other elements.