Higgins Company sells three products, Product A, Product B, and Product C. Sales during June totaled $1,500,000 in the company. The company's overall contribution margin ratio was 38%, and its fixed expenses totaled $525,000 for the period. Sales by product were: Product A, $750,000; Product B, $450,000; and Product C, $300,000. Traceable fixed expenses were: Product A, $180,000; Product B, $150,000; and Product C, $90,000. The variable expenses were: Product A, $450,000; Product B, $270,000; and Product C, $___?___. The contribution margin ratio for Product C for June was:
Higgins Company sells three products, Product A, Product B, and Product C. Sales during June totaled $1,500,000 in the company. The company's overall contribution margin ratio was 38%, and its fixed expenses totaled $525,000 for the period. Sales by product were: Product A, $750,000; Product B, $450,000; and Product C, $300,000. Traceable fixed expenses were: Product A, $180,000; Product B, $150,000; and Product C, $90,000. The variable expenses were: Product A, $450,000; Product B, $270,000; and Product C, $___?___. The contribution margin ratio for Product C for June was:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Higgins Company sells three products, Product A, Product B, and Product C. Sales during June totaled $1,500,000 in the company. The company's overall contribution margin ratio was 38%, and its fixed expenses totaled $525,000 for the period. Sales by product were: Product A, $750,000; Product B, $450,000; and Product C, $300,000. Traceable fixed expenses were: Product A, $180,000; Product B, $150,000; and Product C, $90,000. The variable expenses were: Product A, $450,000; Product B, $270,000; and Product C, $___?___.
The contribution margin ratio for Product C for June was:
Select one:
a. 0%
b. 30%
c. 38%
d. 70%
e. 35%
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