Question 1
In multiproduct situations, when sales mix shifts toward the product with the lowest contribution margin then ________.
◦ total revenues will increase
◦ interest cost will decrease
◦ total contribution margin will increase
◦ operating income will decrease
Question 2
Stella Company sells only two products, Product A and Product B.
| | Product A | Product B | Total |
| Selling price | $50 | $30 | |
| Variable cost per unit | $20 | $10 | |
| Total fixed costs | | | $2,110,000 |
Stella sells two units of Product A for each unit it sells of Product B. Stella faces a tax rate of 40%. Stella desires a net after-tax income of $54,000. The breakeven point in units would be ________.
◦ 25,250 units of Product A and 50,500 units of Product B
◦ 27,500 units of Product A and 55,000 units of product B
◦ 50,500 units of Product A and 25,250 units of Product B
◦ 55,000 units of Product A and 27,500 units of Product B
Early in the twentieth century, when malnutrition was common, companies such as this one advertised
Selected Natural Products
Standardization of Selected Herbal Products
Natural Products
Sex Hormone Products
Products of Protein Breakdown