Exhibit 6-4
Sanchez Company Produces Two Different Remote Control Products

question 79

Multiple Choice

Exhibit 6-4
Sanchez Company produces two different remote control products with the following monthly data for the most recent month:
$\begin{array}{lccc}& \text { Plane } & \text { Boat } & \text { Total } \\\text { Selling price per unit } & \$ 300 & \$ 100 & \\\text { Variable cost per unit } & \$ 240 & \$ 60 & \\\text { Expected unit sales } & 28,000 & 7,000 & 35,000 \\\text { Sales mix } & 80 \% & 20 \% & 100 \% \\\text { Fixed costs } & & & \$ 1,400,000\end{array}$


-Refer to Exhibit 6-4.Assume the sales mix remains the same at all levels of sales.
What is the weighted average contribution margin ratio (rounded) ?

• A)25.0%
• B)21.5%
• C)30.0%
• D)24.0%
• E)None of the answer choices is correct.

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Definitions:

Contingency Time

A reserve time added to a project's schedule to account for potential unforeseen delays.

Late Start Dates

The latest possible dates by which an activity within a project can begin without delaying the project completion.

Complexity Profile

An assessment or understanding of the various factors that contribute to a project's complexity, including technical challenges, stakeholder diversity, and scope volatility.

Median Age

The age that divides a population into two numerically equal groups; half the people are older than this age and half are younger.