Bates Company Plans to Add a New Item to Its

question 56

Multiple Choice

Bates Company plans to add a new item to its line of consumer product offerings.Two possible products are under consideration.Each unit of Product A costs $6 to produce and has a contribution margin of $3,while each unit of Product B costs $12 and has a contribution margin of $4.What is the differential revenue for this decision?

• A) $7
• B) $1
• C) $6
• D) $9

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Definitions:

Future Opportunities

Prospects or possibilities that may arise in the future, offering potential for growth or advancement.

Long Term

Relating to or happening over a long period of time, often extending beyond a year.

Apologizing

Apologizing involves expressing regret or remorse for an action or statement that has caused harm or offense to another person, often with the intent to reconcile.

Business Messages

Communication conveyed through various formats, such as emails, letters, reports, or memos, intended for business purposes.