-Refer to the Above Table

question 111

Multiple Choice

-Refer to the above table. When output rises from 4 units to 5 units, marginal costs are

• A) $19.
• B) $10.
• C) $22.
• D) $31.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes to covering fixed costs and generating profit.

Fixed Costs

Expenses that do not change in proportion to the activity of a business.

Contribution Margin

The amount by which sales revenue exceeds variable costs; it contributes towards covering fixed costs and generating profit.

Variable Costs

Charges that adjust in relation to the quantity of goods or services manufactured by a corporation.