Trillium,Inc What Is the Contribution Margin Ratio of Beta? (Round Your

question 20

Multiple Choice

Trillium,Inc.reports the following information for April: $$\begin{array} { | l | r | r | } \hline & \text { Alpha } & \text { Beta } \\\hline \text { Units sold } & 4000 \text { units } & 700 \text { units } \\\hline \text { Sales price per unit } & \$ 300 & \$ 700 \\\hline \text { Variable manufacturing cost per unit } & 200 & 500 \\\hline \text { Sales commission per unit: } & & \\\hline \text { Alpha: } 4 \% \text { of sales price } & 12 & \\\hline \text { Beta: } 8 \% \text { of sales price } & & 56 \\\hline\end{array}$$ What is the contribution margin ratio of Beta? (Round your answer to two decimal places.)

• A)28.57%
• B)20.57%
• C)33.33%
• D)8.00%

Analyze how external changes like input cost variations affect monopolist's decisions on production inputs.

Grasp the concept of marginal revenue and its importance in monopolistic price setting.

Understand the impact of fixed and variable costs on monopolistic profit maximization.

Understand the concept of profit maximization for monopolies.

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Definitions:

Information Processing

A psychological model that describes how humans perceive, analyze, manipulate, and store information, akin to the functions of a computer.

Attention

Information processing involving the ability to strategically choose among and sort out different stimuli in the environment.

Selective Encoding

The process of focusing attention on relevant information while ignoring irrelevant information during problem solving and decision making.

Ambient Storage

A method of storage that does not require any artificial temperature control, relying instead on the ambient conditions of the surroundings.