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.

---

Definitions:

Demand Curve

A graph representing the relationship between the quantity of a good desired and its price.

Price

is the amount of money expected, required, or given in payment for something.

Change in Demand

A shift in the quantity of a product or service that consumers are willing and able to buy at various prices, due to factors like changes in consumer preferences, income, or the prices of related goods.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a specific period.