Reference: 18_04
a Firm Sells Two Products, a and B

question 140

Multiple Choice

Reference: 18_04
A firm sells two products, A and B. For every unit of A the firm sells, two units of B are sold. The firm's total fixed costs are $1,612,000. Selling prices and cost information for both products follow:
$\begin{array}{rrr}&\text { Unit }&\text { Variables}\\&\text { Sales }&\text { Costs}\\\text { Product}&\text { Price } &\text { per Unit }\\\hline\mathrm{A} & \$ 20 & \$ 8 \\\mathrm{~B} & 24 & 4\end{array}$

-The weighted-average contribution margin is:

• A) $14.67
• B) $17.33
• C) $16.00
• D) $18.00
• E) $15.00

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Definitions:

Bottom-up Processing

A type of information processing that begins with sensory input and builds up to the formation of perception.

Ambiguous Figure

An image or drawing designed to offer more than one perceptual interpretation, often used in psychological tests to explore perception and cognitive processes.

Geons

Simple geometric figures, such as cubes, cylinders, and pyramids, that can be combined to create all other shapes. An early (and crucial) step in some models of object recognition is determining which geons are present.

Top-down Processing

A cognitive process where understanding of information starts with the broader context or knowledge before incorporating details.