A Company Has Contribution Margin Per Unit of $45 and a Contribution

question 129

Multiple Choice

A company has contribution margin per unit of $45 and a contribution margin ratio of 40%. What is the unit selling price?

• A) $75.00
• B) $112.50
• C) $18.00
• D) Cannot be determined.

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Definitions:

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by significant declines in industrial production, widespread unemployment, and deflation.

Public Policy

Government actions and regulatory measures that aim to address public issues, guide economic, social, and administrative activities.

Fully Rational

A term describing decision-makers who, with complete information, are able to consistently make choices that maximize their utility or profit.

Loss Aversion

A cognitive bias where the pain of losing is psychologically about twice as powerful as the pleasure of gaining.