Answer the Following Questions Using the Information Below:
the Fortise

question 123

Multiple Choice

Answer the following questions using the information below:
The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2015 were as follows:
$$\begin{array}{l}\begin{array} { l r r r } \text { Static Budget } & \text { Victor } & \text { House-Mate } & \text { Total } \\\hline \text { Number sold } & 6,000 & 24,000 & 30,000\\\text { Contribution margin } &\$ 1,560,000 & \$ 3,120,000 &\$ 4,680,000\\\\\text { Actual Results } & \text { Victor } & \text { House-Mate } & \text { Total } \\\text { Number sold } & 5,000 & 35,000 & 40,000 \\\text { Contribution margin } & \$ 1,400,000 & \$ 4,130,000 & \$ 5,530,000\end{array}\end{array}$$
-What is the contribution margin for the flexible budget?

• A) $1,250,000
• B) $4,200,000
• C) $5,250,000
• D) $5,850,000

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Definitions:

Random Sample

A subset of individuals chosen from a larger set, or population, where each individual has an equal chance of being selected.

Equal Chance

The principle of providing everyone with the same opportunity without discrimination or preference.

Population

The total number of people living in a particular area, country, or the world, or a specific group of individuals within a larger community.

Randomly

Without a specific pattern, purpose, or objective; happening by chance.