ABU CoHas Several Products, Each with a Different Contribution Margin Ratio

question 79

Multiple Choice

ABU Co.has several products, each with a different contribution margin ratio.If the same number of units were sold in July as in June, but the sales mix changed:

• A)operating income would be the same in June and July.
• B)fixed expenses in July would be in a different relevant range than in June.
• C)the company's overall contribution margin ratio would be the same in June and July.
• D)total contribution margin in July would be different from that in June.

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Definitions:

Parabronchi

Tubular structures in the lungs of birds that permit air to pass through the lungs in one direction, facilitating efficient gas exchange.

Desiccation

The process of drying out or dehydrating, often leading to extreme dryness.

Metabolic Cost

The energy expenditure required to maintain bodily functions and activities, including growth, reproduction, and survival mechanisms.

Kinetic Limitations

Restrictions in the rate of a physical or chemical process, caused by the reaction speed, which affects the overall system’s efficiency.