Questions 19 through 23 pertain to the following data set 19. Chicago and Northw

ID: 2577208 • Letter: Q

Question

Questions 19 through 23 pertain to the following data set 19. Chicago and Northwestern Corporation sells two products. Arks and Bins. Last year Chicago and Northwestern Corporation sold 14,000 units of Arks and units of Bins. Related data are: Unit Contribution Margin Product Unit Selling Price Unit Variable Cost Arks Bins $120 80 $80 $60 $40 $20 What was Chicago and Northwestern Corporation's sales mix for the year? a, b, c. 20% Arks: 80% Bins 12% Arks: 28% Bins 7090 Arks: 30% Bins 40% Arks: 20% Bins

Explanation / Answer

Chicago and Northwestern Corporation

Determination of the sales mix for the year:

The company sells two products – Arks and Bins

The company’s sales mix for the year is 20% Arks; 80% Bins

Product

Arks

Bins

Total

Number of sales units

14,000

56,000

70,000

Proportion

14,000/70,000

56,000/70,000

Sales mix

20%

80%

100%