A Product Sells for $5, and Has Unit Variable Costs

question 5

Multiple Choice

A product sells for $5, and has unit variable costs of $3. This product accounts for $20,000 in annual sales, out of the firm's total of $60,000. When performing multiproduct break-even analysis, the weighted contribution of this product is approximately

• A) 0.133
• B) 0.200
• C) 0.40
• D) 0.667
• E) $1.667

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Definitions:

Insight Therapy

A psychological treatment aimed at increasing a person’s awareness of underlying motives and defenses.

Relaxation Methods

Techniques designed to reduce tension and stress, promoting a state of calmness and tranquility.

Aversion Therapy

A behavioral treatment method that uses unpleasant stimuli to reduce or eliminate undesirable behaviors.

Classical Conditioning

A learning practice in which the consistent linkage of two stimuli results in a response that, initially generated by the second stimulus, is ultimately generated by the first stimulus.