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

question 47

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.


-Assume sales next year total $240,000; product A $70,000,product B $90,000 and C $80,000.Total Contribution Margin for Fletcher will be closest to:

• A) $60,000.
• B) $62,800.
• C) $32,800.
• D) $30,000.

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Definitions:

Chromatin

The complex of DNA and proteins, primarily histones, that forms the chromosomes within the nucleus of eukaryotic cells.

Homochromatin

Incorrect term, possibly meant to refer to Heterochromatin or Euchromatin, which are forms of chromatin in the genome. NO.

Eukaryotic Transcription Factors

Proteins in eukaryotic cells that bind to DNA sequences to regulate the transcription of genetic information from DNA to messenger RNA.

CAPs

Cyclic AMP Receptor Proteins, which are involved in the regulation of gene expression in response to fluctuations in cellular levels of cyclic AMP.