If Selling Price Is $25, Unit Contribution Margin Is $10

question 20

Multiple Choice

If selling price is $25, unit contribution margin is $10, sales volume is 1,000 units, and fixed costs are $8,000, the profit is:

• A)$2,000
• B)$15,000
• C)$10,000
• D)$7,000
• E)None of the above.

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Definitions:

Replacement Costs

The current cost of replacing an asset with a new one of similar kind and quality at current prices.

Natural Resources

Materials or substances occurring in nature that can be used for economic gain, such as minerals, forests, water, and fertile land.

Timber

Timber that has been transformed into beams and planks, representing a phase in the manufacturing of wood.

Metal Ores

Minerals found in nature from which metals can be efficiently mined.