Zehms Inc Has a Unit Contribution Margin of $30 and a a Contribution

question 21

Multiple Choice

Zehms Inc. has a unit contribution margin of $30 and a contribution margin ratio of 60%. How much is the selling price of each unit?

• A) $50
• B) $75
• C) $18
• D) Cannot be determined without more information.

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Definitions:

Structured Problem

A problem that is well-defined, with clear requirements and a known solution methodology.

Unstructured Problem

A problem that lacks clarity in its definition, making it difficult to apply standard or known solutions.

Programmed Decision

A decision that is routine or repetitive, which can be handled using established business rules or procedures.

Crisis

A crisis is a critical or a turning point situation that requires immediate attention and action to prevent or mitigate major negative consequences.