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:

Watershed

A geographical area where all water running off the land drains into a shared body of water, such as a river, lake, or ocean.

Floodplain Zone

An area of land adjacent to a stream or river which stretches from the banks of its channel to the base of the enclosing valley walls and experiences flooding during periods of high discharge.

Marine Organisms

Living creatures that inhabit the ocean or sea, including both plants and animals.

Nekton

Aquatic animals that can swim and move independently of water currents, including fish, whales, and squids.