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:

E(x)

The expected value of a random variable, representing the mean or average value the variable takes over a large number of experiments or trials.

Project Life Cycle

The series of phases that a project goes through from its inception to its closure, typically including initiation, planning, execution, monitoring, and closing.

Execution

The phase in project management where plans are put into action to create the project's deliverables, adhering to agreed specifications and timelines.

Closeout

The final phase of a project where all activities are completed, documents are finalized, and the project is officially concluded.