A Company's Product Sells at $12 Per Unit and Has

question 28

Multiple Choice

A company's product sells at $12 per unit and has a $5 per unit variable cost. The company's total fixed costs are $98,000.The contribution margin per unit is:

• A) $5.00.
• B) $7.00.
• C) $8.17.
• D) $12.00.
• E) $17.00.

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Definitions:

Client-Visits

Client visits are meetings or engagements conducted by business representatives at their clients' locations to discuss services, products, or maintain relationships.

Planning Budget

A financial plan that forecasts revenues, expenses, and resources over a specific period, aiding in strategic decision-making.

Net Operating Income

Income from operations after all operating expenses have been deducted, but before interest and taxes.

Units

A measure of quantity, often used in the context of production, inventory, or sales.