Reference: 08-04
the Following Data Relate to a Company That

question 7

Multiple Choice

Reference: 08-04
The following data relate to a company that produces and sells a travel guide that is updated monthly: $$\begin{array} { | l | l | } \hline \text { Fixed costs: } & \\\hline \text { Copy editing } & \$ 6,000 \\\hline \text { Art work } & 2,000 \\\hline \text { Typesetting } & 72,000 \\\hline & \\\hline \text { Variable costs: } & \\\hline \text { Printing and binding } & \$ 3.20 \text { per copy } \\\hline \text { Bookstore discounts } & 4.00 \text { per copy } \\\hline \text { Salespersons' commissions } & 0.50 \text { per copy } \\\hline \text { Author's royalties } & 2.00 \text { per copy } \\\hline\end{array}$$ Each book sells for $20.00. The company sold 8,000 books in June and 10,000 books in July.
-The unit contribution margin per book is?

• A)$8.30.
• B)$10.30.
• C)$14.30.
• D)$10.80.

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Definitions:

Axles

The rod or spindle (either fixed or rotating) passing through the center of a wheel or group of wheels.

Linehaul Truck

A type of truck specifically designed for the transportation of goods over long distances, often between cities or states.

Ladder Frame

A type of vehicle frame that resembles a ladder with two long rails connected by several cross-members.

Crossmember Braced

A structural reinforcement technique used in vehicles and machinery to provide added stability and strength to the crossmember, enhancing the overall rigidity of the frame.