If the Contribution Margin on the Firm's Single Product Is

question 3

Multiple Choice

If the contribution margin on the firm's single product is $2.00 per unit and fixed costs are $60,000,what will the firm's net income be at sales of 30,000 units?

• A) $90,000
• B) $30,000
• C) $15,000
• D) $0

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Definitions:

Asset

Any resource owned or controlled by a business or individual that is expected to produce positive economic value or future benefit.

Lower Deficit

A reduction in the amount by which a government's spending exceeds its revenue.

Raise Taxes

The act of increasing the amount of money the government requires citizens or businesses to pay on their income, property, or purchases.

Social Security Trust

is a fund that holds the financial assets of the Social Security Administration in the United States, used to pay out benefits to retirees, disabled individuals, and survivors.