Each of a Company's Several Product Lines Has a Different

question 28

Multiple Choice

Each of a company's several product lines has a different contribution margin ratio. Total sales in 2017 were 20% higher than total sales in 2016. Total contribution margin for 2017 will be:

• A) the same as it was in 2016, regardless of changes in sales mix.
• B) 20% higher than it was in 2016, regardless of changes in sales mix.
• C) more than 20% higher than it was in 2016, if the sales mix changes and proportionately more high contribution margin ratio products are sold in 2017 than in 2016.
• D)less than 20% higher than it was in 2016, if the sales mix changes and proportionately more high contribution margin ratio products are sold in 2017 than in 2016.

Understand the use of the balanced scorecard in measuring financial and nonfinancial performance.

Understand how to allocate service department expenses proportionally.

Analyze the impact on net income of operating or discontinuing a division.

Match financial terms with their definitions regarding profitability and asset utilization metrics.

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Definitions:

Dopamine

A neurotransmitter involved in many functions, including reward, motivation, memory, attention, and even regulating body movements.

Norepinephrine

A chemical substance acting as both a hormone and neurotransmitter that plays a critical role in the body's fight or flight reaction, influencing blood sugar, heart rate, and blood pressure.

Cerebellum

A major structure of the brain that plays an essential role in motor control, balance, coordination, and speech.

Intention Tremor

A rhythmic, oscillatory movement disorder that worsens with targeted movement or when approaching a precise task, often linked to disorders of the cerebellum.