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

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Definitions:

CVP Graph

A graphical depiction of the Cost-Volume-Profit analysis, showing how a company's profits, costs, and sales volume are related.

Break-even Point

The level of production or sales at which total revenues equal total expenses, with no net loss or gain.

Total Sales Revenue

The overall income generated from selling goods or services before any expenses are subtracted.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed versus variable costs a company has.