A Product Sells for $5, and Has Unit Variable Costs

question 5

Multiple Choice

A product sells for $5, and has unit variable costs of $3. This product accounts for $20,000 in annual sales, out of the firm's total of $60,000. When performing multiproduct break-even analysis, the weighted contribution of this product is approximately

• A) 0.133
• B) 0.200
• C) 0.40
• D) 0.667
• E) $1.667

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Definitions:

Phenolic Plastic

A type of plastic made by polymerizing phenols and aldehydes, used in electrical and mechanical components due to its insulating and heat-resistant properties.

Caliper Pistons

That part of a disc brake caliper that applies pressure against the brake pad. Pistons are made of steel, plastic, or aluminum.

Frictional Energy

The energy that is generated by the friction between two surfaces moving against each other, often converted into heat.

Rotor Surface

The outer surface of a rotor, in systems like disc brakes, where frictional force is applied to slow down or stop the vehicle.