Zehms Inc Has a Unit Contribution Margin of $30 and a a Contribution

question 21

Multiple Choice

Zehms Inc. has a unit contribution margin of $30 and a contribution margin ratio of 60%. How much is the selling price of each unit?

• A) $50
• B) $75
• C) $18
• D) Cannot be determined without more information.

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Definitions:

Greater

A term used to describe something that is larger or more in quantity when compared to another entity.

Skin Lesion

A part of the skin that has an abnormal growth or appearance compared to the skin around it.

Tumor

A growth of tissue that develops due to cells dividing excessively or failing to die when expected, resulting in an irregular mass.

Remains the Same

A phrase indicating that a situation or condition persists without change over a period of time.