Avia Company Sells a Product for $120 Per Unit

question 54

Multiple Choice

Avia Company sells a product for $120 per unit.Variable costs are $80 per unit,and fixed costs are $1200 per month.The company expects to sell 670 units in September.The unit contribution margin is ________.

• A) $40 per unit
• B) $80 per unit
• C) $200 per unit
• D) $120 per unit

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Definitions:

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets.

Monopoly

A market structure characterized by a single seller who has exclusive control over a particular good or service.

Criminal Offenses

Acts or omissions punishable by law as defined by statute or common law.

Clayton Act

A U.S. antitrust law enacted in 1914 aimed at promoting competition and preventing monopolies by prohibiting certain anti-competitive practices.