Reference: 08-09
Fletcher Company Has Three Products with the Following

question 110

Multiple Choice

Reference: 08-09
Fletcher Company has three products with the following characteristics: $$\begin{array} { | l | l | l | l | } \hline & \text { Product A } & \text { Product B } & \text { Product } \text { C } \\\hline \text { Monthly sales in dollars } & \$ 60,000 & \$ 80,000 & \$ 100,000 \\\hline \text { Contribution margin ratio } & 20 \% & 40 \% & 16 \% \\\hline\end{array}$$
-If total units sold remain unchanged, but the sales mix shifts more heavily toward Product C, one would expect the overall contribution margin ratio to:

• A)remain unchanged.
• B)decrease.
• C)increase.
• D)none of these.

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Definitions:

Adaptive and Flexible

The capacity to adjust and modify one’s behavior or operations in response to changing circumstances or environments.

Rigid

Referring to something that is inflexible or strict, with no room for adjustment or deviation.

Static Organizations

Refer to organizations that maintain stable structures, processes, and strategies over time, resisting change and innovation.

Information Technology (IT)

involves the use of computers, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.