Use the Information Below to Answer the Following Question(s)

question 214

Multiple Choice

Use the information below to answer the following question(s) .
The Snack Hut sells fudge, cashews, and caramel corn. They sold 10,000 units last year. Caramel corn outsold cashews by a ratio of 2 to 1. Sales of fudge were the same as sales of cashews. Fixed costs for The Snack Hut are $19,500. Additional information follows:

-The weighted average contribution margin for the three products of The Snack Hut is

• A) $3.00.
• B) $48.00.
• C) $12.00.
• D) $2.44.

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Definitions:

Gain

A financial term referring to the positive difference between the sale price of an asset and its original purchase price.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of the company.

Stockholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities, representing ownership equity in a corporation.

Indirect Method

In accounting, this method is used in cash flow statements to convert net income into net cash flow from operating activities by adjusting for non-cash transactions.