Rose CorpHas Contribution Margin of $65,000,variable Costs of $10 Per Unit,and

question 10

Multiple Choice

Rose Corp.has contribution margin of $65,000,variable costs of $10 per unit,and fixed costs of $25,000.If Rose sells 13,000 units,what was the selling price per unit?

• A)$5.00
• B)$12.50
• C)$15.00
• D)$17.08

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Definitions:

Present Value Factors

Mathematical factors used to calculate the present value of future cash flows, taking into account the time value of money and discount rates.

Maturity Value

The amount payable to the holder of a financial instrument at its maturity date, including the principal and any remaining interest.

Stated Interest Rate

The annual interest rate declared on a loan or financial instrument, not including any fees or compounding of interest.

Effective Yield

The total yield of a bond, taking into account annual interest payments and the bond’s price fluctuation.