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:

Local Spending

Expenditures by individuals, businesses, or government within a specific geographic area, contributing to the local economy.

Gains From Trade

The benefits that individuals, companies, or countries experience as a result of engaging in voluntary trade.

Efficiency

The optimal use of resources to achieve the desired output with minimum waste or expense.

Community

A group of people living in the same place or having a particular characteristic in common.