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

question 108

Multiple Choice

The following information pertains to the 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 the selling price of product F is increased to $8.25 with a reduction in monthly sales to 400 units. Monthly profits will

• A)increase by $420.
• B)decrease by $60.
• C)increase by $180.
• D)increase by $2,070.

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Definitions:

Physical Products

Tangible items that can be seen, touched, and purchased, as opposed to services or digital goods.

Industrial Market

The market for goods, services, and supplies used in the production of other goods and services rather than for personal consumption.

Individual Quick Freeze

A food preservation process that rapidly freezes individual pieces of food, preserving freshness, texture, and flavor.

North American Industry Classification System

A classification system used by business and government to categorize and measure economic activity in the United States, Canada, and Mexico.