Figure 9-4
the Following Information Pertains to Ewing Company's Three

question 29

Multiple Choice

Figure 9-4
The following information pertains to Ewing Company's three products: $\begin{array}{llll}&D&E&F\\\text { Unit sales per month } & 900 & 1,400 & 800\\\text { Selling price per unit } & £ 6.00 & £ 11.25 & £ 7.50 \\\text { Variable costs per unit } & 3.00&9.00&7.80 \\\text { Unit contribution margin } & \underline{£ 3.00} & \underline{£ 2.25} & \underline{£(0.30) }\end{array}$
-Refer to Figure 9-4. Assume that product F is discontinued and the space is used to produce E. Product E's production is increased to 2,200 units per month, but E's selling price of all units of E is reduced to £10.20. Monthly profits will

• A)decrease by £2,070.
• B)increase by £1,200.
• C)decrease by £270.
• D)increase by £2,640.

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Definitions:

Competition Act

Legislation aimed at preventing anti-competitive practices in the marketplace, ensuring fair competition.

Competition Tribunal

The Competition Tribunal is a specialized tribunal that adjudicates issues related to competition law, aiming to ensure fair competition practices within the marketplace.

Balance of Probabilities

A standard of proof in civil litigation, determining that something is more likely to be true than not.

Federal Law

Legislation enacted by the national government of a country, which has jurisdiction over the entire nation and supersedes state or local laws.