Question: all questions relate back to the first chart QUESTION 1 Randis jelly, Ltd collected the following data about their monthly contribution margins from sales of


QUESTION 1 Randis jelly, Ltd collected the following data about their monthly contribution margins from sales of jelly: Moonberry Yogiberry Merryberry 6 8 Column1 Column2 Selling Price Variable Cost Contribution Margin Dollar Sales Units Sold 4 120,000 15.000 3 120,000 20.000 160,000 20,000 Randi believes that she could increase sales of Yogiberry by 15,000 units per month if more attention were devoted to it and less to Moonberry. Moonberry sales would decrease by 6,000 per month. What change in income would occur if this action were taken? Decrease of $10,000 Increase of $21,000 Income would remain the same Increase of $10,000 Cannot determine from data provided QUESTION 2 QUESTION 2 The sales mix percentage of Merryberry is 47.7% 40.0% 54.0% 34.0% none of these QUESTION 3 The estimated weighted average contribution margin is 47.7% 40.0% 50.0% 34.0% none of these QUESTION 4 What will happen to total profit if Randi drops Yogiberry? Profits will decrease by $60,000 Profits will decrease by $120,000 The Fixed costs will decrease by $24,000 The Fixed Costs will increase by $24,000 none of these QUESTION 5 What will be the effect on profits if Randi spends an additional $20,000 on advertising and the sales of Merryberry increases 15,000 units, but the sales of Yogiberry decreases by 1,000 units? Profits will increase by $37,000 Profits will decrease by $37.000 Profits will increase by $ 48,000 Profits will decrease by $22,000 none of these
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