The Following Information Pertains to Ewing Company's Three Products -Assume That Product F Is Discontinued and the Space Is

question 89

Multiple Choice

The following information pertains to Ewing Company's three products: $\begin{array}{lrrrr}& \underline{\text { D }}&\underline{E} &\underline{F} \\\text { Unit sales per month } & \underline{900} & \underline{1.400} & \underline{800} \\\\\text { Selling price per unit } & \$ 6.00 & \$ 11.25 & \$ 7.50 \\\text { Variable costs per unit } & \underline{3.00} & \underline{9.00} & \underline{7.80} \\\text { Unit contribution margin } & \$ 3.00 & \$ 2.25 & \$(0.30\end{array}$


-Assume that product F is discontinued and the space is used to produce E.Product E's production is increased to 2,200 units per month,but E's selling price of all units of E is reduced to $10.20.What will be the effect on monthly profits?

• A)decrease by $270
• B)increase by $1,200
• C)decrease by $2,070
• D)increase by $2,640

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Definitions:

Motivational Congruence

Motivational Congruence is the alignment between an individual's goals, values, or desires and their actions or behaviors, facilitating a sense of purpose and satisfaction.

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Efficacy

The ability to produce a desired or intended result, often used in the context of therapeutic treatment's effectiveness.

Strengths-Based Approach

A method of enhancing individuals' capacities and potentials by focusing on their assets and strengths rather than weaknesses.