Assume That the Following Information Was Available for Daylight Enterprises

question 147

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?
$$\begin{array} { | l | r | r | r | } \hline & \text { Ceiling lights } & { \begin{array} { c } \text { Tabletop } \\\text { lights }\end{array} } & \begin{array} { c } \text { Stand-alone } \\\text { lights }\end{array} \\\hline \text { Sales } & \$ 350,000 & \$ 175,000 & \$ 440,000 \\\hline \text { Variable expenses } & & & \\\hline \text { Variable production } & \$ 70,000 & \$ 19,250 & \$ 90,000 \\\hline \text { Variable advertising } & \$ 10,500 & \$ 3,500 & \$ 22,000 \\\hline \text { Variable shipping } & \$ 12,000 & \$ 14,000 & \$ 28,000 \\\hline\end{array}$$

• 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:

Equitable

Fair and impartial treatment of all individuals, especially in terms of resource distribution and opportunities.

Racialization

is the process of ascribing ethnic or racial identities to a relationship, social practice, or group that did not identify itself as such.

Racial Minority Group

A group of people who are differentiated or marginalized in a given society based on racial or ethnic characteristics, often facing systemic inequalities.

Ethnic Minority Group

A group within a larger society that has distinct national, religious, linguistic, or cultural attributes differing from the majority population.