a) Marigold Corp. has sales of $2100000, variable costs of $1500000, and fixed costs of $500000. Marigolds margin of safety ratio is

20%.

17%.

80%.

83%.

B)

If a company sells multiple products, at any level of units sold, net income will be higher if

more fixed expenses are incurred.

more lower contribution margin units are sold than higher contribution margin units.

more higher contribution margin units are sold than lower contribution margin units.

weighted-average unit contribution margin decreases.

C) Swifty Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 70% for Sporting Goods and 30% for Sports Gear, as determind by total sales dollars. Swifty incurs $7800000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 60%. The break-even point in dollars is

$15294118.

$2574000.

$20000000.

$13000000.