Duo, Inc, Carries Two Products and Has the Following Year-End Income

question 103

Multiple Choice

Duo, Inc., carries two products and has the following year-end income statement (000s omitted) : If products AR-10 and ZR-7 are substitutes for each other, a sales mix and sales volume variation for the combined products can be calculated. If this combination is calculated, the net effect on profit of the change in the unit sales mix is: (Round intermediate calculations to five significant digits, and your final answer to the nearest whole dollar amount.)

• A) $480 favorable.
• B) $700 favorable.
• C) $560 favorable.
• D) $940 favorable.
• E) $1,960 favorable.

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Definitions:

Consumers

Individuals or groups who use goods and services to satisfy their personal needs and desires.

Unskilled Labor

Workforce with no special training or qualifications, often associated with manual or simple tasks.

Productivity Gains

The increase in the output of goods and services per unit of input, typically labor, resulting from improvements in technology, processes, or methods.

Migrant Workers

Individuals who move from one region or country to another to seek employment.