A Division Sold 200,000 Calculators During 2019 How Much Is the Unit Contribution Margin?
A) $1

question 29

Multiple Choice

A division sold 200,000 calculators during 2019: $\begin{array}{l}\text { Sales }&&\$2,000,000\\\text { Variable costs: }\\\text { Materials } & \$ 380,000 \\\text { Order processing } & 150,000 \\\text { Billing labor } & 110,000 \\\text { Selling expenses } & 60,000\\\text { Total variable costs }&&700,000\\\text { Fixed costs }&&1,000,000\end{array}$ How much is the unit contribution margin?

• A) $1.00
• B) $3.50
• C) $8.50
• D) $6.50

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Definitions:

Taxable Income

Taxable income is the portion of an individual's or a company's income used to determine how much tax they owe to the government in a given tax year.

Net Fixed Assets

The value of a company's property, plant, and equipment minus depreciation, representing long-term investments in physical assets.

Straight-line Basis

A method of calculating depreciation of an asset, which evenly spreads the cost over its useful life.

Operating Income

Earnings before interest and taxes (EBIT), which shows a company's profit from its core business operations.