Answer the Following Questions Using the Information Below:
Woodruff Flowering

question 126

Multiple Choice

Answer the following questions using the information below:
Woodruff Flowering Plants provides the following information for the month of May:
$\begin{array}{lrrrr}&\text { Actual }&&\text { Budget }\\&\text { Fuchsia}&\text { Dogwood }&\text { Fuchsia}&\text { Dogwood }\\\text { Sales in units } & 18,000 & 4,500 & 17,000 & 3,000 \\\text { Contribution margin per unit } & \$ 20 & \$ 17 & \$ 21 & \$ 16\end{array}$
-For May,Woodruff will report a(n) ________.

• A) favorable sales-mix variance
• B) unfavorable sales-mix variance
• C) favorable sales-volume variance
• D) unfavorable sales-volume variance

Analyze the impact of product mix decisions on profitability.

Understand the concept of joint processing and decide on further processing or sale at a split-off point.

Calculate and interpret product costs and pricing.

Determine the optimal production level to maximize net operating income.

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Definitions:

Federal Trade Commission Act

A United States federal law established in 1914 to prevent unfair competition, deceptive acts, and to regulate antitrust.

Clayton Antitrust Act

A piece of legislation passed in the United States in 1914 aimed at preventing anti-competitive practices in their incipiency, specifically addressing issues of price discrimination, exclusive dealing agreements, and mergers and acquisitions that could potentially lead to monopolies.

Wheeler-Lea Act

An amendment to the Federal Trade Commission Act in the United States, focusing on protecting consumers from deceptive and unfair business practices.

Sherman Antitrust Act

A foundational United States antitrust law passed in 1890 that prohibits monopolistic business practices, aiming to promote fair competition for the benefit of consumers.