Answer the Following Questions Using the Information Below:
Ceylon Tea

question 240

Multiple Choice

Answer the following questions using the information below:
Ceylon Tea Products has an exclusive contract with West Sydney Tea Importers Corporation.Calamine and Ceylon are two brands of teas that are imported and sold to retail outlets.The following information is provided for the month of March:
$$\begin{array}{c}&&&&&&&&&&&&&{ \text { Actual } } &&&&&&& { \text { Budget } } \\\end{array}\\\begin{array} { l r r r r r } & \text { Calamine } & \text { Ceylon } & & \text { Calamine } & \text { Ceylon } \\\text { Sales in kg } & 1850 \mathrm {~kg} & 1650 \mathrm {~kg} & & 2000 \mathrm {~kg} & 1500 \mathrm {~kg} \\\text { Price per kg } & \$ 2.50 & \$ 2.50 & & \$ 2.00 & \$ 3.00 \\\text { Variable cost per kg } & \underline { 1.00 } & \underline { 2.00 } && \underline { 1.00 } & \underline { 1.50 } \\\text { Contribution margin } & \underline {\$ 1.50} & \underline { \$ 0.50} & & \underline { \$ 1.00} & \underline { \$ 1.50}\end{array}$$ Budgeted and actual fixed corporate-sustaining costs are $1750 and $2000,respectively.
-What is the contribution margin for the flexible budget?

• A)$3600
• B)$4325
• C)$3750
• D)$4250

---

Definitions:

Kotler and Armstrong

Refer to authors Philip Kotler and Gary Armstrong, known for their contributions to marketing principles and textbooks.

Collecting Data

The process of gathering information from various sources for analysis in order to make informed decisions or understand trends.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including about the potential customers and competitors.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, traditionally categorized into product, price, place, and promotion.