Pennington Products
Pennington Products Has Two Product Lines: R-100 and R-200

question 128

Multiple Choice

Pennington Products
Pennington Products has two product lines: R-100 and R-200. Revenue and cost information for each of the product lines are as follows:
$\begin{array}{lrr}&\underline{\text { R-100 }}&\underline{\text { R-200 }}\\\text { Selling price per unit } & \$ 45 & \$ 60 \\\text { Variable costs per unit } & 15 & 24 \\\text { Traceable fixed expenses } & \$ 250000 & \$ 360000\end{array}$

Pennington has common fixed expenses of $250 000 per year. Last year, the company produced and sold 30 000 units of R-100 and 20 000 units of R-200.
-What is the segment margin of the R-100 product line?

• A) $650 000
• B) $900 000
• C) $525 000
• D) $400 000

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Definitions:

Sexual Orientation

An enduring pattern of emotional, romantic, or sexual attractions to men, women, or both sexes, seen as part of a continuum or a distinct category.

Leptin

A hormone produced by adipose (fat) cells that regulates energy balance by inhibiting hunger, which in turn diminishes fat storage in adipocytes.

Regulating Appetite

Regulating Appetite involves physiological and psychological mechanisms that control food intake, influenced by factors such as hormonal signals, presence of food, and learned behaviors.

Predominantly Homosexual

Refers to individuals whose sexual and emotional attraction is primarily towards people of the same sex.