39. The contribution margin ratio of the local branch is closest to a, b. e. d. 59% 41% 49% 52% 40. What is the local branch's responsibility margin? a. $5,500,000 b. $1,926,000 c. $2,246,000 d. $(474,000) QUESTIONS 41-43 ARE BASED ON THE FOLLOWING Division X supplies Division Y with partially completed units. The costs of the units transferred are $30 per unit. When the units arrive at Division Y, further modification is needed to convert them to a finished good. The total cost to Division Y is $40 per unit. Division Y will sell finished units for $100 per unit. 41. Using a negotiated transfer price of $50, how much per unit profit will Division Y recognize? a. $60 b. $70 c. $10 d. $50 42 Using a cost-plus transfer price of 20% of cost, how much per unit profit will Division X recognize? a. $20 b. $6 c. $64 d. $0 43. Regardless of what transfer price is used, what is the overall per unit profit (in regards to the company)? a. $70 b. $60 c. $65 d. $30 QUESTIONS 44-45 ARE BASED ON THE FOLLOWING INFORMATION Fancy Furniture produced a batch of 2,000 coffee tables at a cost of $355,000. It was discovered that the entire batch was finished improperly. Fancy has to make the following decision: sell the tables "as is" to secondary furniture outlets for $305,000, or spend additional $315,000 to refinish them and sell them for $605,000