Lyons Company Consists of Two Divisions, a and B

question 55

Multiple Choice

Lyons Company consists of two divisions, A and B. Lyons Company reported a contribution margin of $50,000 for Division A, and had a contribution margin ratio of 30% in Division B, when sales in Division B were $200,000. Net operating income for the company was $25,000 and traceable fixed expenses were $40,000. Lyons Company's common fixed expenses were:

• A) $85,000
• B) $70,000
• C) $45,000
• D) $40,000

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Definitions:

SPIN Approach

The SPIN Approach is a strategic sales technique that focuses on understanding and addressing the specific Situation, Problem, Implication, and Need-payoff questions of a potential client.

Commercial Kitchen

A professionally equipped kitchen designed for the preparation of food on a large scale, often found in restaurants, hotels, and other food service establishments.

Hygiene

Practices and conditions that help maintain health and prevent the spread of diseases, typically concerning cleanliness.

Probes

In sales, questions asked by the salesperson to uncover the needs, interests, and objections of a potential buyer.