Beach Time Produces Two Models of Beach Chairs, Lay Back

question 31

Multiple Choice

Beach Time produces two models of beach chairs, Lay Back and Easy Rest.Information regarding these products for May follows: $\begin{array}{lrr}&\text { Lav Back }&\text { Easy Rest }\\\text { Number of units } & 6,000 & 14,000 \\\hline \text { Sales revenue } & \$ 120,000 & \$ 140,000 \\\text { Fixed costs } & 24,000 & 50,000 \\\text { Variable costs } & 60,000 & 42,000 \\\text { Profit } & \$ 36,000 & \$ 48,000 \\\text { Selling price per unit } & \$ 20 & \$ 10\end{array}$ How much is Beach Time's weighted average contribution margin ratio?

• A)60.00%
• B)32.31%
• C)60.77%
• D)71.53%

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Definitions:

Dissociative Amnesia

A psychological disorder characterized by temporary memory loss that cannot be attributed to a common medical condition.

Memory Loss

The inability to recall past experiences or information, which can be temporary or permanent, partial or complete.

Somatic Symptom

A physical symptom that can cause significant distress or impairment, not fully explained by a medical condition, substance use, or another mental disorder.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a comprehensive classification of mental disorders published by the American Psychiatric Association.