Pennington Products Pennington Products has two product lines: R-100 and R-200. Revenue and cost information for each of the product lines are as follows:
Pennington has common fixed expenses of $380,000 per year. Last year, the company produced and sold 35,000 units of R-100 and 25,000 units of R-200.
Refer to the Pennington Products information above. What is the segment margin ratio of the R-200 product line?
A) 50%
B) 30%
C) 60%
D) 20%

Question

Pennington Products Pennington Products has two product lines: R-100 and R-200. Revenue and cost information for each of the product lines are as follows:
 Pennington has common fixed expenses of $380,000 per year. Last year, the company produced and sold 35,000 units of R-100 and 25,000 units of R-200.
Refer to the Pennington Products information above. What is the segment margin ratio of the R-200 product line?
A) 50% 
B) 30% 
C) 60% 
D) 20%

Quizplus · Accepted Answer

The Answer of Pennington Products Pennington Products has two product lines: R-100 and R-200. Revenue and cost information for each of the product lines are as follows:
 Pennington has common fixed expenses of $380,000 per year. Last year, the company produced and sold 35,000 units of R-100 and 25,000 units of R-200.
Refer to the Pennington Products information above. What is the segment margin ratio of the R-200 product line?
A) 50% 
B) 30% 
C) 60% 
D) 20%

Pennington Products Pennington Products Has Two Product Lines: R-100 and R-200