Chang Company Has Two Divisions, T and W

question 47

Multiple Choice

Chang Company has two divisions, T and W. The company's overall contribution margin ratio is 40% when combined sales in the two divisions total £900,000. If variable expenses are £200,000 in Division T and if Division W's contribution margin ratio is 20%, the sales in Division W must be

• A)£200,000.
• B)£425,000.
• C)£700,000.
• D)£340,000.

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Definitions:

Caffeine

A stimulant found in coffee, tea, and other beverages, known to enhance alertness and energy levels.

Coffee

A brewed drink prepared from roasted coffee beans, which are the seeds of berries from the Coffea plant.

Moderate Drinking

Consuming alcohol in a manner that is within recommended guidelines and limits, minimizing health risks.

Fetal Alcohol Effects

A range of effects that can occur in an individual whose mother drank alcohol during pregnancy, including physical, mental, behavioral, and/or learning disabilities.