Zeke Company Sells 25,000 Units at $21 Per Unit

question 19

Multiple Choice

Zeke Company sells 25,000 units at $21 per unit. Variable costs are $10 per unit, and fixed costs are $75,000. The contribution margin ratio and the unit contribution margin are:

• A) 47% and $11 per unit
• B) 53% and $7 per unit
• C) 47% and $8 per unit
• D) 52% and $11 per unit

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Definitions:

Willingness to Pay

The maximum amount an individual is prepared to spend on a good or service, reflecting its value to them.

Basketball Sneakers

Footwear specifically designed for playing basketball, offering support, durability, and traction.

Willingness to Pay

The maximum amount a consumer is ready to pay for a good or service, reflecting the value they place on it.

Basketball Sneakers

Specialized footwear designed to provide support, comfort, and performance improvements for the sport of basketball.