Assume That the Following Information Was Available for Bonobos Company

question 30

Multiple Choice

Assume that the following information was available for Bonobos Company. How would its owner, Brian Spaly, evaluate this information based on contribution margin ratio?
$$\begin{array} { | l | r | r | r | } \hline & \begin{array} { c } \text { Orange } \\\text { Crush }\end{array} & \begin{array} { c } \text { Spider } \\\text { Fighters }\end{array} & { \text { Cubbies } } \\\hline \text { Sales } & \$ 500,000 & \$ 700,000 & \$ 900,000 \\\hline \text { Variable expenses } & & & \\\hline \text { Variable production } & \$ 50,000 & \$ 140,000 & \$ 270,000 \\\hline \text { Variable advertising } & \$ 5,000 & \$ 14,000 & \$ 36,000 \\\hline \text { Variable shipping } & \$ 10,000 & \$ 28,000 & \$ 72,000 \\\hline\end{array}$$

• A) Orange Crush has the lowest contribution margin ratio.
• B) Cubbies has the highest contribution margin ratio.
• C) Spider Fighters has the highest contribution margin ratio.
• D) Orange Crush has the highest contribution margin ratio.
• E) Based on contribution margin ratio, Spaly should consider expanding the Cubbies line and scaling back on Spider Fighters and Orange Crush.

---

Definitions:

Working Memory

The component of short-term memory dedicated to the direct conscious analysis of sensory information and language use.

Spacing Effect

The psychological phenomenon whereby learning is more effective when study sessions are spaced out over time rather than conducted in a single cramming session.

American National Exhibition

A 1959 exhibition in Moscow, showcasing American culture and technology as part of Cold War diplomacy.

Richard Nixon

The 37th President of the United States, known for his involvement in the Vietnam War, détente with the Soviet Union and China, and the Watergate scandal that led to his resignation.