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:

Negotiators

Parties engaged in discussion to settle differences or reach an agreement, utilizing various strategies and tactics in the negotiation process.

Dispute

A disagreement or argument between parties that can arise from differing views, interests, or claims.

Devaluing

The act of reducing or undermining the perceived worth, importance, or validity of something or someone.

Concessions

Compromises made by one party in a negotiation to reach an agreement or settlement.