Question
Twin Products Company produces and sells two products. Product M sells for $12 and has variable costs of $6. Product W sells for $15 and
Twin Products Company produces and sells two products. Product M sells for $12 and has variable costs of $6. Product W sells for $15 and has variable costs of $10. Twin predicted sales of 25,000 units of M and 20,000 of W. Fixed costs are $60,000 per month. Assume that Twin achieved its sales goal of $600,000 for September, but fell short of its expected operating income of $190,000. Which of the following descriptions best describes the actual results reported of revenue of $600,000 and operating income of less than $190,000?
- Twin sold 50,000 of M and no product W.
- Twin sold more of both products M and W than expected.
- Twin sold more of product W and less of product M than expected. <---------------- answer
d.Twin sold more of product M and less of product W than expected
Can someone help me with this question, please? The answer is choice c ) but I want an explanation of why the answer is C to have a better understanding. Show your work/explanation and thanks in advance!
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