Ralph and Emma's Is Considering a Project with Total Sales

question 67

Multiple Choice

Ralph and Emma's is considering a project with total sales of $17,500,total variable costs of $9,800,total fixed costs of $3,500,and estimated production of 400 units. The depreciation expense is $2,400 a year. What is the contribution margin per unit?

• A) $4.50
• B) $10.50
• C) $14.14
• D) $19.09
• E) $19.25

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Definitions:

Seaweed

Multicellular algae that grow in marine or freshwater environments, often used as food or fertilizer.

Sea Lettuce

A common name for Ulva, a genus of edible green algae that grows in salty waters around the world.

Ulva

A genus of green algae, commonly known as sea lettuce, found in marine and brackish water environments.

Nori

A type of edible seaweed often used in Japanese cuisine, especially for wrapping sushi.