Management of a Company Is Evaluating Two Potential Orders

question 115

Multiple Choice

Management of a company is evaluating two potential orders. Due to limited capacity only one of these orders can be accepted. Incremental fixed costs are the same for either option. Based on the information in the table below which of the following statements is true?

• A) Option B has the highest contribution margin per unit.
• B) Option A has the highest total contribution margin.
• C) Option B has the lowest contribution margin ratio.
• D) Option B has the highest total contribution margin.
• E) Option A has the highest amount per dollar of sales to contribute to contribution margin and profit.

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Definitions:

Androcentrism

The belief that the male is the norm.

Androgynous

Androgynous refers to the combination of masculine and feminine characteristics into an ambiguous form, which can relate to gender expression, fashion, or physical traits.

Masculinity

Pertains to the qualities, behaviors, and roles traditionally associated with being male in a given society.

Femininity

A set of attributes, behaviors, and roles generally associated with girls and women.