Staples Sells CDs ($2

question 11

Multiple Choice

Staples sells CDs ($2.00) and boxes of computer paper ($3) . If total sales were $1,560 and customers bought 5 times as many CDs as boxes of computer paper, how many CDs were sold?

• A)120
• B)480
• C)600
• D)1,200
• E)None of these

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Definitions:

Utility Rates

Charges imposed by utility companies for the use of services such as electricity, gas, water, and sewer.

Contribution Margin

The amount by which the sale of a product or service exceeds its variable costs, used to cover fixed costs and contribute to net income.

Fixed Costs

Expenses that do not change with the level of production or sales over a relevant period, such as rent, salaries, and insurance.

Break-even Sales

The amount of sales needed to cover all fixed and variable costs, resulting in zero profit.