If sales totaled $200,000 for the current year (10,000 units at $20 each) and pl

Question

If sales totaled $200,000 for the current year (10,000 units at $20 each) and planned sales totaled $187,500 (12,500 units at $15 each), the effect of the unit price factor on the change in sales is a:
Question 12 options:
$50,000 increase
$12,500 increase
$62,500 increase
$37,500 decrease


If sales totaled $800,000 for the year (80,000 units at $10.00 each) and the planned sales totaled $819,000 (78,000 units at $10.50 each), the effect of the unit price factor on the change in sales is:
Question 13 options:
$19,000 decrease
$21,000 increase
$40,000 decrease
$21,000 decrease

The relative distribution of sales among various products sold is referred to as the:
Question 14 options:
by-product mix
joint product mix
profit mix
sales mix
Management should focus its sales and production efforts on the product or products that will provide
Question 15 options:
the highest sales revenue
the lowest product costs
the maxiumum contribution margin
the lowest direct labor hours

Explanation / Answer

Question 12
$50,000 increase
$12,500 increase
$62,500 increase
$37,500 decrease

Question 13
$19,000 decrease
$21,000 increase
$40,000 decrease
$21,000 decrease

Question 14
by-product mix
joint product mix
profit mix
sales mix

Question 15
the highest sales revenue
the lowest product costs
the maxiumum contribution margin
the lowest direct labor hours

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