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

question 63

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 contribution margin in dollars for Product B for June was:

• A)$20,000
• B)$111,000
• C)$120,000
• D)$200,000

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Definitions:

Technology B

This term is too generic to define without more context, as it could refer to any second or alternative technology in a specific domain or comparison.

Competitor's Technology

The technological tools, innovations, or systems used by competing businesses within the same industry.

Produce

To create or manufacture goods or services for sale.

Units

Basic quantities or measurements, such as pieces, meters, kilograms, used to specify an amount of something.