The Selling Price That Would Maintain the Same Contribution Margin

question 78

Multiple Choice

The selling price that would maintain the same contribution margin ratio as last year is

• A)$9.00.
• B)$8.25.
• C)$10.00.
• D)$9.50.

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Definitions:

Total Cost

The complete amount of expenses incurred by a business or individual in the production or acquisition of a good or service.

Manufacture Units

The individual items or goods produced by a manufacturing process.

High-low Method

A way of attempting to understand cost behavior by analyzing the difference in cost between the highest and lowest volume levels.

High-low Method

A technique used in managerial accounting to estimate variable and fixed cost components of a cost by analyzing the highest and lowest activity levels.