Rusty Co Sells Two Products, X and Y

question 96

Multiple Choice

Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X's and 35,000 units of Y's. Related data are: What was Rusty Co.'s sales mix last year?

• A) 58% X's, 42% Y's
• B) 60% X's, 40% Y's
• C) 30% X's, 70% Y's
• D) 12.5% X's, 87.5% Y's

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Definitions:

Financial Ratios

Quantitative measures derived from financial statement analysis to assess a company's performance, financial health, and valuation.

Profitability

A measure of the efficiency and effectiveness of a company in generating profit from its operations.

Solvency

The ability of a company to meet its long-term financial obligations.

Borrower Judged Insolvent

A situation where a borrower is legally declared unable to meet their debt obligations.