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

question 47

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.If the sales mix shifts to 50 percent planes and 50 percent boats,what happens to the weighted average contribution margin per unit?

• A)It decreases.
• B)It increases.
• C)It is not affected.
• D)There is not enough information to answer this question.

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Definitions:

Unconscious Processes

Mental activities below the level of conscious awareness that influence thoughts, feelings, and behaviors, a fundamental concept in psychoanalytic theory.

Psychodynamic Therapy

A therapeutic approach aiming to explore the psychological forces underlying emotional issues, focusing on unresolved conflicts and influences from the past.

Personality Reshaping

The process of making significant and lasting changes to an individual's personality traits and behaviors, often through psychological interventions.

Biological Therapy

Treatment that uses substances derived from living organisms to fight disease, including some types of cancer and chronic illnesses.