Ramirez Corporation Sells Two Types of Computer Hard Drives

question 18

Multiple Choice

Ramirez Corporation sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus) . Q-Drive has variable costs per unit of $90 and a selling price of $150. Q-Drive Plus has variable costs per unit of $105 and a selling price of $195. The weighted-average unit contribution margin for Ramirez is

• A) $69.
• B) $75.
• C) $81.
• D) $150.

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Definitions:

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The process of transforming illiquid assets into a tradable form by converting them into securities.

Private Equity

Capital investments made into companies that are not publicly traded, often to finance growth, acquisitions, or restructuring.

Dodd-Frank Reform Act

A comprehensive piece of financial regulation passed in 2010 in the United States, aimed at preventing the recurrence of financial crises through increased regulation.