Nelson Co Incurs $568,000 in Fixed Costs While Producing Three Products

question 145

Multiple Choice

Nelson Co. incurs $568,000 in fixed costs while producing three products with the following characteristics: Sales Mix Unit Contribution Contribution
Product (Units) Margin Margin Ratio
T 5 $900 45%
Q 3 600 40%
R 2 400 35%
What is the selling price of Product T?

• A)$1,200
• B)$1,143
• C)$2,000
• D)$1,500

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Definitions:

Goods And Services

The items (goods) and activities (services) that are produced or provided to fulfill the needs or wants of consumers.

Socio-Economic

Relating to or concerned with the interaction of social and economic factors.

CSR

Corporate Social Responsibility, a business model in which companies integrate social and environmental concerns in their operations and interactions with their stakeholders.

Broader Welfare

A concept referring to the general health, happiness, and well-being of a population or community.