Kent CorpHas Fixed Costs of $25,000

question 20

Multiple Choice

Kent Corp.has fixed costs of $25,000.Kent expects net operating income of $300,000 at its anticipated level of production,65,000 units.What is Kent's unit contribution margin?

• A)$5.00
• B)$10.00
• C)$27.50
• D)$20.00

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Definitions:

Partnership

A legal arrangement where two or more persons agree to share the profits of a business which they run together.

Malpractice

Failure of a professional to perform their duties to the required standard of care, resulting in harm to their client or patient.

Corporation

A legal entity recognized by law as separate from its owners, with rights to own property, sue or be sued, and conduct business.

General Corporation

A type of business organization that is legally separate from its owners, with the ability to own property, incur liabilities, and conduct business in its own name.