The Crested Butte Company Recorded the Following Data for a Product

question 125

Multiple Choice

The Crested Butte Company recorded the following data for a product line: $$\begin{array} { l r } \text { Sales } & \$ 250,000 \\\text { Variable manufacturing expenses } & 50,000 \\\text { Direct fixed manufacturing expenses } & 37,500 \\\text { Variable selling and administrative expenses } & 25,000 \\\text { Direct fixed selling and admin. expenses } & 30,000\end{array}$$
What is the contribution margin of the product line?

• A)$175,000
• B)$162,500
• C)$142,500
• D)$170,000

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Definitions:

Accommodation

In psychology, the process of adjusting one's cognitive structures to fit new information; in optics, the adjustment of the eye's lens to focus on objects at various distances.

Existing Schemas

Preexisting mental structures or frameworks that help individuals organize and interpret information.

Developmental Changes

The transformation or evolution of physical, cognitive, psychological, and social capabilities and functioning over the course of a person's lifetime.

Sensorimotor Stage

A stage in Piaget's theory of cognitive development, occurring from birth to about 2 years of age, where infants learn about the world through their senses and motor actions.