A Company Has a Unit Contribution Margin of $120 and a Contribution

question 32

Multiple Choice

A company has a unit contribution margin of $120 and a contribution margin ratio of 40%. What is the unit selling price?

• A) $200
• B) $300
• C) $48
• D) Cannot be determined.

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Definitions:

Interactions

The reciprocal action or influence between two or more entities, objects, or individuals, often resulting in a change or response.

Informal Rewards

Unofficial or non-structured forms of recognition and rewards given in a workplace, such as verbal praise, more autonomy, or flexible hours.

Skill-Based Pay

A compensation system that pays employees based on the range, depth, or mastery of their skills and knowledge, rather than their job title or position.

Flexible Benefit

A benefits plan that allows employees to choose from a range of options to create a package that best suits their personal needs and circumstances.