The following information is available for the Rollin' Baby Company which produces two types of strollers, standard and deluxe. If the company shifts its product mix to 3,000 standard units and 4,500 deluxe units, profit before tax will:
A) Increase by $10,000
B) Increase by $135,000
C) Decrease by $12,000
D) Decrease by $22,000

Question

The following information is available for the Rollin' Baby Company which produces two types of strollers, standard and deluxe.  If the company shifts its product mix to 3,000 standard units and 4,500 deluxe units, profit before tax will:
A) Increase by $10,000 
B) Increase by $135,000 
C) Decrease by $12,000 
D) Decrease by $22,000

Quizplus · Accepted Answer

The Answer of The following information is available for the Rollin' Baby Company which produces two types of strollers, standard and deluxe.  If the company shifts its product mix to 3,000 standard units and 4,500 deluxe units, profit before tax will:
A) Increase by $10,000 
B) Increase by $135,000 
C) Decrease by $12,000 
D) Decrease by $22,000

The Following Information Is Available for the Rollin' Baby Company