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Assume that the following information was available for Guy Brown Company. How would Maria Teresa Vazquez and the other owners evaluate this information based on contribution margin ratio?
Sales Variable expenses
Variable production Variable advertising Variable shipping
Recycled Toner Cartridges
$500,000
$50,000 $5,000 $10,000
Office Supplies
$700,000
$140,000 $14,000 $28,000
Furniture $900,000
$270,000 $36,000 $72,000
A. Recycled toner cartridges has the lowest contribution margin ratio. B. Furniture has the highest contribution margin ratio. C. Office supplies has the highest contribution margin ratio. D. Recycled toner cartridges has the highest contribution margin ratio. E. Based on contribution margin ratio, the owners should consider expanding the furniture line and scaling back on office supplies and recycled toner cartridges.
Nomes owned a piece of land that cost $250,000 but was worth $600,000 at the date of purchase. For each of the three concepts described in the chapter, what value would be attributed to this land in a consolidated balance sheet at the date of take..
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