The Following Information Pertains to Dallas Churning Company's Three Products

question 113

Multiple Choice

The following information pertains to Dallas Churning Company's three products: $\begin{array}{lrrr}&D&E&F\\\text { Unit sales per month } & 900 & 1,400 & 800 \\\text { Selling price per unit } & \$ 6.00 & \$ 11.25 & \$ 7.50 \\\text { Variable costs per unit } & 3.00 & 9.00 & 7.80 \\\text { Unit contribution margin } & \$ 3.00 & \$ 2.25 & \$(0.30) \end{array}$
Assume that product F is discontinued and the space used to produce product F is rented for $600 per month. Monthly profits will

• A)increase by $360.
• B)increase by $840.
• C)increase by $600.
• D)decrease by $5,400.

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Definitions:

Abnormal

Deviating from what is normal or usual, typically in a way that is undesirable or worrying.

Prefix

A morpheme added at the beginning of a word to adjust or qualify its meaning.

Combining Vowel

A vowel, often 'o' or 'i', used in medical terminology to ease the pronunciation between the word root and the suffix or between two word roots.

Cutting Out

The act of removing or excising a piece of material or a part of a structure.