Vegas Company Has the Following Unit Costs -
Vegas Produced and Sold 10,000 Units

question 8

Multiple Choice

Vegas Company has the following unit costs:
$\begin{array}{llr} \text { Variable manufacturing overhead } &\$25\\ \text { Direct materials } &20\\ \text { Direct labor} &19\\ \text { Fixed manufacturing overhead} &12\\\text { Fixed marketing and administrative }&7\end{array}$

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Vegas produced and sold 10,000 units. If the product sells for $100, what is the contribution margin?

• A) $170,000
• B) $240,000
• C) $290,000
• D) $360,000

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Definitions:

Anticipatory Breach

A situation in contract law where one party indicates, either by words or actions, that they will not fulfill their contractual obligations before the due date.

Performance Danger

Performance danger involves situations or conditions that significantly increase the likelihood of failure or harm during the execution of a task or duty, warranting precaution.

Major Failure

A significant breakdown or malfunction in a system, project, or product that impedes its intended function.

Exemption Clauses

Provisions in a contract that aim to limit or exclude one party's liability in certain circumstances.