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Bugle Corp

question 36

Multiple Choice

Bugle Corp.has sales of $400,000,a variable cost ratio of 40%,and a profit of $40,000.If 10,000 units were sold,what is the contribution margin per unit?


Definitions:

Target Cost

The estimated price for a product or service that is determined by subtracting a desired profit margin from the competitive market price.

Profit Margin

The ratio or percentage of profit to sales, reflecting the efficiency with which a company or business unit generates income relative to its revenue.

Competition-Based Method

A method of price setting based on the price offered by competitors.

Price-Setting Methods

Various strategies and techniques businesses use to determine the selling price of their goods or services.

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