A Project Has Expected Sales of 21,000 Units at a Price

question 73

Multiple Choice

A project has expected sales of 21,000 units at a price of $14.99, variable costs of $9.03, and fixed costs of $58,590. What is the contribution margin per unit?

• A) $2.79
• B) $3.17
• C) $5.96
• D) $9.03
• E) $14.99

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Definitions:

Payroll Tax

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay to their staff.

Regressive

A term typically used to describe tax systems that take a smaller percentage of income as income increases, disproportionately affecting lower-income earners.

Low Income Levels

describe the economic condition where individuals or households earn less than the median income of a specific geographic area, often leading to limited access to basic needs and services.

Corporate Profits Tax

A tax imposed on the net income of corporations.