DJ Studios Is Considering Opening a New Location

question 413

Multiple Choice

DJ Studios is considering opening a new location. This location is estimated to bring in sales of $398,000 a year with total variable costs of $62,000, total fixed costs of $274,500, and estimated unit sales of 1,200. The depreciation expense is $18,900 a year. What is the contribution margin per unit?

• A) $103
• B) $117
• C) $280
• D) $284
• E) $291

---

Definitions:

Attributes

Characteristics or features that are inherent to or associated with a person, object, or concept.

Legal Advice

Guidance provided by a qualified legal professional regarding the interpretation of the law or the legal aspects of a situation.

Paralegal

A person trained in subsidiary legal matters but not fully qualified as a lawyer, who assists attorneys in their legal work.

AAfPE

The American Association for Paralegal Education, an organization promoting quality paralegal education and training.