Question

40. MacCloud Industries has two divisions and mi c h division has unico different types of tennis racquets and tennis posts. The following informatii Standard Division Premium Duo Sales sof Variable costs Contribution margin Total fixed costs S.400.000 290000 SIM000 mation is available: Total 500.000 $1.000.000 S240000 $300,000 What is the weighted average contribution margin rati? a. 3.4% b 35% C. 36% 50% e. None of these answers are correct. 41. Cathy's Towels sells three m bush and towels and washcloths in a 4-3-2 mix in its Each bath towel sells for S10 and Sosts 34. ench and towels for $5 and costs $2, and each washcloth sells for $2.50 and costs $1. The she's annual Gived expenses $124.000, and the tax rate is 40% How many bath towels does the firm sell at the breakeven point? a. 2.000 b. 3.000 c. 4,000. d. 10,000, e. None of these answers are correct. 142. High operating leverage is a measure of the risk of change in profit a firm assumes when it ha Sa. High variable cost. b. High fixed cost. c. High sales. d. High turnover e. High expectations. 43 which is the first step in the management decision-making process? Determine and evaluate possible courses of action Review results of the decision hdentify the problem and assign responsibility Make a decision. Y 44. In deciding between alterative choices for a given situation, managers usually employ a five-step Which of the following is not a step in the decision making process? e performance fy the criteria and identify the alternative actices and implement the best course of action form relevant and strategic cost analysis ed the above are steps in the decision making process. 3. Management accountants are frequently asked to analyze various decision situations including the following: #1 Alternative uses of plant space, to be considered in a make/buy decision. CE

Answer 1

Question No. (40)

Answer -

Computation of Weighted-average contribution margin ratio

	Particulars	Calculation
A.	Contribution margin--Standard Division	Given in question	$120000
B.	Contribution margin--Premium Division	Given in question	$240000
C.	Total Sales	Given in question	$1000000
Weighted-average contribution margin ratio		(A + B) / C	36%

Hence, Option - (c) is Correct.