Rusty Co Sells Two Products: X and Y

question 43

Multiple Choice

Rusty Co. sells two products: X and Y. Last year, Rusty sold 5,000 units of X and 35,000 units of Y. Related data are as follows: ​
-Rusty Co.'s sales mix last year was

• A)58% X; 42% Y
• B)60% X; 40% Y
• C)30% X; 70% Y
• D)12.5% X; 87.5% Y

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Definitions:

Par Stock

A standard inventory level that a business aims to maintain to ensure adequate supplies are available to meet demand without holding excessive stock.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, while maintaining the same total valuation.

Contributed Capital

Funds received by a company from selling its stock to investors, representing the investors' ownership stake in the company.

Par Value

The nominal value of a bond or stock as declared by the issuer, which may not correspond with its value on the market.