Reference: 22_07
Assume Rock Bottom Golf Is Divided into Four

question 68

Multiple Choice

Reference: 22_07
Assume Rock Bottom Golf is divided into four departments that operate as profit centers and that the data below is from the most recent fiscal year.
$\begin{array}{lrrrr}&\text { Golf Clubs}&\text { Golf Bags}&\text { Golf Balls }&\text { Golf Apparel }\\\text { Sales } & \$ 200,000 & \$ 400,000 & \$ 800,000 & \$ 1,600,000 \\\text { Cost of goods } & 90,000 & 220,000 & 400,000 & 960,000\\\text { Sold}\\\text { Direct expenses}\\\text { Salaries } & 18,000 & 54,000 & 90,000 & 226,000 \\\text { Insurance } & 2,000 & 3,000 & 6,000 & 120,000 \\\text { Utilities } & 1,000 & 2,000 & 3,000 & 10,000\end{array}$
-Given the information above,which of Rock Bottom Golf's departments has the highest contribution margin as a percent of sales?

• A) Golf Clubs.
• B) Golf Bags.
• C) Golf Balls.
• D) Golf Apparel.
• E) None, this is not a calculation performed at the department level.

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Definitions:

Sinusoid

Terminal blood vessel having a larger diameter than an ordinary capillary.

Precapillary Sphincter

Smooth muscle sphincter that regulates blood flow through a capillary.

Relaxation

The state of being free from tension and anxiety, or the act of making something less tight.

Sinusoidal Capillaries

Specialized blood vessels with large, irregularly shaped lumens found in the liver, spleen, and bone marrow, facilitating the exchange of materials between blood and tissues.