Answer the Following Questions Using the Information Below:
Hobart Garden

question 110

Multiple Choice

Answer the following questions using the information below:
Hobart Garden Centre provides the following information for the month of May:
$$\begin{array} {c}&&&&&&&&&&&&&&&& { \text { Actual } } &&&&&&& & { \text { Budget } } \\\end{array}\\\begin{array} { l r r r r } & \text { Tulips } & \text { Geraniums } & \text { Tulips } & \text { Geraniums } \\\text { Sales in urits } & 1950 & 1800 & 2250 & 1500 \\\text { Contribution margin per urit } & \$ 11 & \$ 18 & \$ 10 & \$ 20\end{array}$$
-What is the budgeted contribution margin per composite unit for the actual mix?

• A)$14.00
• B)$14.36
• C)$13.80
• D)$14.80

---

Definitions:

Income Effect

The change in consumption that results from a change in real income (purchasing power), holding prices constant, reflecting how higher income increases consumption of goods while lower income reduces it.

Income Effect

The change in an individual's consumption choices resulting from a change in their real income.

Substitution Effect

The economic understanding that as prices rise (or incomes decrease), consumers will replace more expensive items with less costly alternatives.

Inferior Good

A type of good for which demand decreases when the income of the consumer increases, inversely related to normal goods.