Greg's Golf Carts Produces Two Models: Model 24 Has Sales

question 45

Multiple Choice

Greg's Golf Carts produces two models: Model 24 has sales of 500 units with a contribution margin of $40 each; Model 26 has sales of 350 units with a contribution margin of $50 each. If sales of Model 26 increase by 100 units, how much will profit change?

• A) $5,000 increase
• B) $17,500 increase
• C) $22,500 increase
• D) $35,000 increase

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Definitions:

Microanatomy

The branch of anatomy concerning the microscopic structures of tissues and organs.

Sternocleidomastoid

A prominent neck muscle stretching from the sternum and clavicle to the mastoid process behind the ear, pivotal in rotating and flexing the head.

Biceps Brachii

A large muscle in the upper arm that turns the hand to face palm up and flexes the arm and forearm.

Brachialis

A muscle in the upper arm that flexes the elbow, located underneath the biceps.