Affinity Makes a Single Product, Pool Pumps How Much Is the Contribution Margin Per Unit of Inventory

question 34

Multiple Choice

Affinity makes a single product, pool pumps. Information for 2014 appears below: $$\begin{array} { l r } \text { Sales in units } & 5,800 \\\text { Production in units } & 6,200 \\\text { Beginning inventory } & 1,500 \\\text { Variable production cost per unit } & \$ 46.00 \\\text { Variable selling cost per unit } & \$ 6.00 \\\text { Fixed production cost per year } & \$ 31,000 \\\text { Fixed selling and administrative cost per year } & \$ 24,000 \\\text { Selling price per unit } & \$ 75.00\end{array}$$ How much is the contribution margin per unit of inventory?

• A) $29.00
• B) $24.00
• C) $23.00
• D) $18.00

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Definitions:

Employee Autonomy

The degree to which employees have the freedom and independence to plan and execute their work tasks.

Holistic

An approach or perspective that emphasizes the importance of understanding the whole system, person, or problem rather than just focusing on its parts.

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Organizational Variable

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