Dodero Company Produces a Single Product That Sells for $100

question 118

Multiple Choice

Dodero Company produces a single product that sells for $100 per unit. Fixed expenses total $12,000 per month, and variable expenses are $60 per unit. The company's sales average 500 units per month. Which of the following statements is correct?

• A)The company's contribution margin ratio is 40%.
• B)The company's break-even point is $12,000 per month.
• C)All of the answers are correct.
• D)The fixed expenses remain constant at $24 per unit for any activity level within the relevant range.

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Definitions:

Excise Tax

A tax charged on specific goods, services, and activities, such as gasoline, alcohol, and gambling.

Tax Burden

The impact of taxation on an individual or entity, often measured as a proportion of income or revenue.

Excise Tax

A tax imposed on the sale of specific goods or services, often included in the price of items such as gasoline, alcohol, and tobacco.

Gasoline Supply

The total volume of gasoline available in the market or to consumers, influenced by factors such as crude oil supply, refining capacity, and market demand.