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

question 87

Multiple Choice

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

• A) $800,000
• B) $360,000
• C) $300, 000
• D) $120,000

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Definitions:

Expansive

Having the capacity or tendency to expand, extend, or encompass a wide range.

Purposeful

Having a clear aim or goal; being intentional in one's actions or decisions.

Fun

Enjoyment, amusement, or lighthearted pleasure.

Csikszentmihalyi

Mihaly Csikszentmihalyi, a Hungarian-American psychologist known for developing the concept of flow, a state of heightened focus and immersion in activities.