Talk Time Cellular Sells Smart Phones for $150

question 120

Multiple Choice

Talk Time Cellular sells smart phones for $150.The unit variable cost per phone is $25 plus a selling commission of 10%.Fixed manufacturing costs total $5,600 per month, while fixed selling and administrative costs total $2,100.What is the contribution margin per phone?

• A)$125
• B)$110
• C)$50
• D)There is not enough information provided to determine the answer.

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