Standlar Company Makes Wireless Speakers

question 74

Multiple Choice

Standlar Company makes wireless speakers.The standard model price is $360 and variable expenses are $210.The deluxe model price is $500 and variable expenses are $300.The superior model price is $1,600 and variable expense per unit is $600.Total fixed expenses are $300,000.Generally, Standlar sells 8 standard models and 4 deluxe models for every superior model sold.
-Using the sales mix to form a package, what is the total package contribution margin?

• A) $2,000
• B) $1,110
• C) $3,000
• D) $900
• E) $1,200

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Definitions:

Expected Profits

The forecasted profitability of a venture or investment, taking into account anticipated costs and revenues.

Money Invested

The capital put into an investment vehicle with the expectation of generating a profit or income.

Corporation Income Taxes

Taxes applied to the income or profit of corporations.

Small Corporations

These are businesses that are smaller in size, often categorized by fewer employees or lower annual revenue.