For Pierce Company, Sales Is $500,000, Variable Expenses Are $330,000

question 14

Multiple Choice

For Pierce Company, sales is $500,000, variable expenses are $330,000, and fixed expenses are $140,000.Pierce's contribution margin ratio is

• A)10%.
• B)28%.
• C)34%.
• D)66%.

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Definitions:

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on what the seller believes the customers will pay.

Antitrust Regulations

Laws designed to enhance competition in the market by preventing monopolistic practices and promoting fair and free competition.

Nondiscriminating Monopolist

A monopolist who charges all consumers the same price for its product, without any price discrimination.

Economic Profits

Profits exceeding the opportunity costs of all resources utilized by a firm, representing superior returns over the next best alternative.