The Following Costs Have Been Estimated Based on Sales of 30,000

question 80

Multiple Choice

The following costs have been estimated based on sales of 30,000 units:
$\begin{array}{lcc}& \text {Total Annual }& \text { Percent That Is}\\& \text {Costs}& \text {Variable}\\ \text { Direct materials } & \$ 300,000 &100\%\\ \text { Direct labor } & 250,000&100\% \\\text { Manufacturing overhead } &250,000&100\%\\ \text { Selling and administrative}&150,000&25 \%\end{array}$
What selling price (rounded to two decimal places) will yield a contribution margin of 40%?

• A) $59.38
• B) $43.75
• C) $39.58
• D) $33.25

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Definitions:

Shading

The technique in drawing and art of adding darkness to convey the sense of depth, volume, or to create the illusion of shadow.

Noncontradictory Propositions

Statements or claims that do not contradict each other, meaning they can both be true at the same time in the same context.

Nonequivalent

Not equal in value, measure, force, effect, significance, etc.; lacking equivalence or equality.

Obverse

The proposition that results from changing the quality of a categorical proposition and replacing the predicate term with its complement.