The Gasson Company Sells Three Products, Product A, Product B

question 24

Multiple Choice

The Gasson Company sells three products, Product A, Product B and Product C, and had sales of £1,000,000 during the month of June. The company's overall contribution margin ratio was 37% and fixed expenses totaled £350,000. Sales were: Product A, £500,000; Product B, £300,000; and Product C, £200,000. Traceable fixed costs were: Product A, £120,000; Product B, £100,000; and Product C, £60,000. The variable expenses of Product A were £300,000 and the variable expenses of Product B were £180,000.
-The common fixed expense for Gasson Company for the month of June was

• A)£350,000.
• B)£280,000.
• C)£70,000.
• D)£20,000.

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Definitions:

Impose Discipline

The act of enforcing rules or standards of behavior and applying penalties for violations to maintain order.

Limited Funding

A situation where financial resources are insufficient to meet the needs or ambitions of a project, organization, or initiative.

Police Corruption

Dishonest or fraudulent conduct by police officers, typically involving bribery or the misuse of power.

Drug Traffickers

Individuals involved in the illegal distribution and sale of drugs.