Reference: 06-10
the Following Data Have Been Provided by a Retail

question 67

Multiple Choice

Reference: 06-10
The following data have been provided by a retail company that sells a single product. $$\begin{array} { | l | l | l | } \hline & \text { This Year } & \text { Last Year } \\\hline \text { Units sold } & 200,000 & 150,000 \\\hline \text { Sales revenue } & \$ 1,000,000 & \$ 750,000 \\\hline \text { Less cost of goods sold } & 700,000 & 525,000 \\\hline \text { Gross margin } & 300,000 & 225,000 \\\hline \text { Less operating expenses } & 222,000 & 210,000 \\\hline \text { Net income } & \$ 78,000 & \$ 15,000 \\\hline\end{array}$$
-If total variable costs are $748,000, what is the company's contribution margin for this year?

• A)$300,000.
• B)$158,000.
• C)$120,000.
• D)$252,000.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and the development of new products or processes.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs.

Outward Shift

A movement of the supply or demand curve in an economic diagram indicating an increase in supply or demand, leading to changes in price and quantity.

Consumption Level

The total amount of goods and services that an individual or group consumes over a specific period.