A Division Sold 200,000 Calculators During 2017 How Much Is the Unit Contribution Margin?
A)$1

question 58

Multiple Choice

A division sold 200,000 calculators during 2017: $\begin{array}{lr}\text { Sales }&&\$2,000,000\\\text { Variable costs: }\\\text { Materials } & \$ 380,000 \\\text { Order processing } & 150,000 \\\text { Billing labor } & 110,000 \\\text { Selling expenses } & 60,000\\\text { Total variable costs }&&700,000\\\text { Fixed costs }&&1,000,000\end{array}$ How much is the unit contribution margin?

• A)$1.00
• B)$3.50
• C)$8.50
• D)$6.50

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Definitions:

Fitness For A Particular Purpose

A warranty in sales law that goods will meet the specific request of the buyer.

Warranty Rights

Legal rights guaranteed to consumers, ensuring that products meet certain standards of quality and reliability.

Third Parties

Individuals or entities that are not directly involved in a legal agreement or transaction but may be affected by it or have an interest in its outcome.

Seller's Warranties

Guarantees made by a seller regarding the condition, quality, or title of the goods being sold.