Assume the Following Information for a Product Line -Refer to the Figure

question 16

Multiple Choice

Assume the following information for a product line:
$\begin{array}{llr} \text { Sales } &\$500,000\\ \text {Variable manufacturing expenses } &100,000\\ \text { Direct fixed manufacturing expenses} &75,000\\ \text { Variable selling and administrative expenses} &50,000\\ \text { Direct fixed selling and admin, expenses } &60,000\\\end{array}$

-Refer to the figure.What is the contribution margin of the product line?

• A)$215,000
• B)$325,000
• C)$350,000
• D)$400,000

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Definitions:

Truth-in-Lending Act

Legislation from the federal government in the United States intended to support the well-informed utilization of consumer credit by mandating the disclosure of its conditions and costs.

Restrictive Covenant

A clause in a contract that limits certain actions of the parties involved, often to protect business interests or preserve confidentiality.

Mortgage Reform and Anti-Predatory Lending Act

U.S. legislation aimed at improving the transparency of the mortgage process and protecting borrowers from unfair, deceptive, or predatory lending practices.

Subprime Mortgages

Loans granted to borrowers with lower credit ratings due to the perceived higher risk of default, often resulting in higher interest rates.