1. Beaucheau Farms sells three products (E,F, and G) with a sale mix ratio of 3:1:2. Unit sales are shown below. What is the sales price per composite unit?

Product E Product F Product G

$11 $8 $9

a. $59.00

b. $28.00

c. $20.00

d. $41.00

2. Wallace Industries has a total contribution margin of $58,560 and net income of $24,400 for the month of April. Wallace expects sales volume to increase by 5% in May. What are the degree of operating leverage and the expected percent change in income for Wallace Industries?

a. 2.5 and 13%

b. 1.42 and 5%

c. 0.42 and 2.2%

d. 2.4 and $12%

3. If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month, what is their degree of leverage?

a. 2.4

b. 0.18

c. 1.18

d. 4.7