Product	Unit Selling Price	Unit Variable Cost	Unit Contribution Margin
Arks	$120	$80	$40
Bins	80	60	20

1. What was Carter Co.'s weighted average unit (package) contribution margin?

a.

$24

b.

$60

c.

$92

d.

$20

2. Assuming that last year's fixed costs totaled $960,000, what was Carter Co.'s break-even for Arks and Bins separately in units?

a.

Arks 40,000 units, Bins 12,000 units

b.

Arks 12,000 units, Bins 20,000 units

c.

Arks 8,000 Bins 24,000 units,

d.

None of the above

3. A favorable cost variance occurs when

a.	Actual costs are more than standard costs.
b.	Standard costs are more than actual costs.
c.	Standard costs are less than actual costs.
d.	None of the above.