Baines Brothers Manufactures and Sells Two Products, a and Z

question 57

Multiple Choice

Baines Brothers manufactures and sells two products, A and Z in the ratio of 4:2. Product A sells for $75; Z sells for $95. Variable costs for product A are $35; for Z $40. Fixed costs are $418,500. Compute the contribution margin per composite unit.

• A) $270.
• B) $240.
• C) $300.
• D) $330.
• E) $285.

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