The Hum Division of the Ho Company Reported the Following

question 7

Multiple Choice

The Hum Division of the Ho Company reported the following data for last year:

-What was the West Division's minimum required return in August?

• A) $45,600
• B) $42,200
• C) $53,618
• D) $8,018

---

Definitions:

Fixed Expenses

Expenses that remain constant regardless of production or sales volume, including rent, salaries, and insurance.

Sales Mix

The relative proportions in which a company’s products are sold. Sales mix is computed by expressing the sales of each product as a percentage of total sales.

Total Profits

The sum of all profits made by a business within a certain period, after all expenses have been deducted from total revenues.

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable costs have been subtracted, indicating how much contributes towards fixed costs and profit.