Gena Manufacturing Company Has a Fixed Cost of $225,000 for the Production

question 98

Multiple Choice

Gena Manufacturing Company has a fixed cost of $225,000 for the production of tubes. Estimated sales are 150,000 units. A before tax profit of $125,000 is desired by the controller. If the tubes sell for $5 each, what unit contribution margin is required to attain the profit target?

• A) $3.00.
• B) $2.33.
• C) $1.47.
• D) $0.90.