Fiesta Supply Company Compiled the Following Data in Order to Assess

question 11

Multiple Choice

Fiesta Supply Company compiled the following data in order to assess the weighted average contribution margin per unit of two of the company's best-selling party items;the dome tent and the portable gazebo.
1.What is the contribution margin of the dome tent?
2.What is the weighted-average contribution margin per unit?

• A)$880;$221.67
• B)$530;$1,330
• C)$775;$220
• D)$389;$6

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Definitions:

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate sales or revenue.

Profitability

A measurement of an entity's ability to generate income in relation to its revenue, assets, or equity.

Assets

Resources owned by a company that have economic value and can be used to meet its obligations or invest in its operations.

Liabilities

Financial obligations or debts owed by a company to creditors.