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:

DSM

Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as the authoritative guide to the diagnosis of mental disorders.

MMPI

Minnesota Multiphasic Personality Inventory, a standardized psychometric test of adult personality and psychopathology.

Rorschach Test

A psychological test in which subjects' perceptions of inkblots are recorded and then analyzed using psychological interpretation, complex algorithms, or both, often used to assess personality and emotional functioning.

Clinical Interview

A method used in psychology to gather information about an individual's psychological state and functioning through a structured conversation.