Kelly Co Incurs $465,000 in Fixed Costs While Producing Three Products

Kelly Co. incurs $465,000 in fixed costs while producing three products with the following characteristics: $$\begin{array} { | l | c | c | c | } \hline \text { Product } & \text { Sales Mix (units) } & \begin{array} { c } \text { Contribution } \\\text { Mar gin per unit }\end{array} & \begin{array} { c } \text { Contribution } \\\text { Margin Ratin }\end{array} \\\hline \text { Srnall } & 5 & \$ 300 & 25 \% \\\hline \text { Medium } & 3 & \$ 200 & 30 \% \\\hline \text { Larpe } & 2 & \$ 500 & 40 \% \\\hline\end{array}$$ What is the selling price of Small?

A) $1,200
B) $400
C) $800
D) $1,250

Correct Answer:

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