Answer the Following Questions Using the Information Below

question 124

Multiple Choice

Answer the following questions using the information below:
The following information is for Alex Corp:

-If the sales mix shifts to one unit of Product X and two units of Product Y, then the weighted-average contribution margin will ________.

• A) increase per unit
• B) stay the same
• C) decrease per unit
• D) decrease by $0.50 per unit

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Definitions:

Adjusting Entries

Journal entries used to adjust account balances in order to reflect more accurate financial information at the end of an accounting period.

Journal Entry

A record in accounting that notes a specific financial transaction in the books.

Debit Amount

A financial entry that increases an asset or expense account, or decreases a liability, equity, or revenue account.

Credit

A financial term that refers to the provision of resources (such as funds) by one party to another, where the second party does not repay the first party immediately but incurs a debt and is usually obliged to pay interest.