ACC 241 Exam 2 Questions and
Answers | 100% Pass
If the sale price per unit decreases and variable costs per unit remain the same, what
will be the effect on the contribution margin ratio?
A. It will remain the same
B. It will decrease
C. It will increase
D. It is impossible to determine wit...
A company's manager would consider which of the following in deciding whether to
discontinue its electronics product line?
A. The costs it could save by discontinuing the product line
B. The revenues it would lose from discontinuing the product line
C. How discontinuing the electronics product line would affect sales of its other products
(like CDs)
D. All of the above - ✔️✔️Correct-D. All of the above
Fresco Appliances manufactures two products: Food Processors and Espresso
Machines. The following data are available:
Food Processors:
Sales Price: $135 Variable Costs: $60
Espresso Makers:
Sales Price: $255 Variable Costs: $190
The company can manufacture two food processors per machine hour or three
espresso machines per machine hour. The company's production capacity is 1,600
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