Winters Company Sells Three Products Given These Data, the Contribution Margin Ratio for the Company

question 105

Multiple Choice

Winters Company sells three products. Sales and contribution margin ratios for the three products follow:
$$\begin{array} { l c c c } & \text { Product A } & \text { Product B } & \text { Produet C } \\\text { Sales in dollars } & \$ 20,000 & \$ 40,000 & \$ 100,000 \\\text { Contribution margin ratio } & 45 \% & 40 \% & 15 \%\end{array}$$
Given these data, the contribution margin ratio for the company as a whole would be:

• A) 25%.
• B) 75%.
• C) 33.3%.
• D) Cannot determine with the information given.

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Definitions:

Hospital Insurance

A type of health insurance specifically designed to cover the costs of hospitalization and related medical expenses.

Time and a Half

A rate of pay that is 1.5 times the employee's normal hourly wage, typically paid for overtime work.

OASDI

Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides benefits to retired people, the disabled, and families of retired, disabled or deceased workers.

Hospital Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred during hospitalization.