Assume That the Following Information Was Available for Daylight Enterprises,Inc

question 38

Multiple Choice

Assume that the following information was available for Daylight Enterprises,Inc.Which of the following statements is(are) true with regard to contribution margin ratio?
$$\begin{array} { | l | c | c | r | } \hline & \begin{array} { c } \text { Ceiling } \\\text { Lights }\end{array} & \begin{array} { c } \text { Tabletop } \\\text { Lights }\end{array} & \begin{array} { c } \text { Stand-Alone } \\\text { Lights }\end{array} \\\hline \text { Sales } & \$ 350,000 & \$ 175,000 & \$ 440,000 \\\hline \text { Variable expenses } & & & \\\hline \text { Variable production } & \$ 70,000 & \$ 19,250 & \$ 90,000 \\\hline \text { Variable advertising } & \$ 10,500 & \$ 3,500 & \$ 22,000 \\\hline \text { Variable shipping } & \$ 12,000 & \$ 14,000 & \$ 28,000 \\\hline\end{array}$$

• A) Tabletop lights has the lowest contribution margin ratio.
• B) Ceiling lights has the highest contribution margin ratio.
• C) Ceiling lights has the lowest contribution margin ratio.
• D) Stand-alone lights has the highest contribution margin ratio.
• E) Tabletop lights has the highest contribution margin ratio.

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Definitions:

Cotton Kingdom

A term used to describe the Southern United States in the 19th century, where cotton farming heavily influenced the economy and society.

Cincinnati

A city in Ohio, United States, known for its historic architecture, vibrant arts scene, and economic contributions, particularly during the 19th century as a major inland port.

Cyrus McCormick's Reaper

An invention by Cyrus McCormick in the 1830s, this mechanical reaper revolutionized agriculture by greatly increasing the efficiency of crop harvesting.

Cotton Production

The agricultural process of cultivating and harvesting cotton, which is a significant crop for the textile industry, historically foundational to economies, especially in the southern United States.