Virtually All Coffee Is Made from Two Species

question 64

Multiple Choice

Virtually all coffee is made from two species. Which statement describes the Arabica bean?

• A) Arabica beans have a milder flavour and take longer to develop after planting
• B) Arabica beans have a milder flavour and are quick to develop after planting
• C) Arabica beans have a stronger flavour and take longer to develop after planting
• D) Arabica beans have a stronger flavour and are quick to develop after planting

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Definitions:

High-low Method

A technique used in accounting and finance to estimate variable and fixed costs based on the highest and lowest levels of activity.

Variable Component

An element of cost or expense that varies directly with changes in production volume, business activity, or other drivers.

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable costs have been deducted, indicating how much contributes to fixed costs and net profit.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, indicating the amount each unit contributes to covering fixed costs and generating profit.