Fletcher Company Has Three Products with the Following Characteristics Fixed Costs = $30,000 Per Month

question 137

Multiple Choice

Fletcher Company has three products with the following characteristics:
$\begin{array} { | l | r | r | r | } \hline & \text { Product A } & \text { Product B } & \text { Product C } \\\hline \begin{array} { l } \text { Monthly sales in } \\\text { dollars }\end{array} & \$ 60,000 & \$ 80,000 & \$ 100,000 \\\hline \begin{array} { l } \text { Contribution margin } \\\text { ratio }\end{array} & 20 \% & 40 \% & 16 \% \\\hline\end{array}$ Fixed Costs = $30,000 per month.


-If Total sales next month are $330,000 and Fletchers sales mix remains unchanged,the total sales for product C will be closest to:

• A) $100,000.
• B) $110,000.
• C) $82,500.
• D) $137,500.

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Definitions:

Beyond Compliance

Refers to businesses going above the legal requirements to be more socially responsible and environmentally friendly.

Environmentally Friendly

Practices or products that have a minimal impact on the environment, often emphasizing sustainability and conservation of resources.

Cost Savings

Reductions in expenses achieved through efficient management and operations, often resulting in increased profits.

Corporate Social Responsibility

Practices and policies undertaken by corporations to positively impact society and the environment beyond legal and regulatory requirements.