Assume That the Following Information Was Available for Guy Brown

question 73

Multiple Choice

Assume that the following information was available for Guy Brown Company.How would Maria Teresa Vazquez and the other owners evaluate this information based on contribution margin ratio? $$\begin{array} { l c c r } & \begin{array} { c } \text { Recycled } \\\text { Toner }\end{array} & \text { Office } & \\& \text { Cartridges } & \text { Supplies } & \text { Furniture } \\\text { Sales } & \$ 500,000 & \$ 100,000 & \$ 900,000 \\\text { Variable expenses } & & & \\\text { Variable production } & \$ 50,000 & \$ 140,000 & \$ 270,000 \\\text { Variable advertising } & \$ 5,000 & \$ 14,000 & \$ 36,000 \\\text { Variable shipping } & \$ 10,000 & \$ 28,000 & \$ 72,000\end{array}$$

• A)Recycled toner cartridges has the lowest contribution margin ratio.
• B)Furniture has the highest contribution margin ratio.
• C)Office supplies has the highest contribution margin ratio.
• D)Recycled toner cartridges has the highest contribution margin ratio.
• E)Based on contribution margin ratio, the owners should consider expanding the furniture line and scaling back on office supplies and recycled toner cartridges.

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Definitions:

Situational Leadership Model

A leadership framework that proposes the most effective leadership style depends on the readiness and competency of the followers in various situations.

Selling Style

A method or approach used by sales professionals to engage, persuade, and complete transactions with customers.

Follower Characteristics

Traits or attributes of individuals who support and are influenced by leaders, affecting the dynamics of the leadership process.

Task Structure

The clarity and predictability of the goals, procedures, and roles associated with a specific task.