Penny Company Sells 25,000 Units at $59 Per Unit

question 109

Essay

Penny Company sells 25,000 units at $59 per unit. Variable costs are $29 per unit, and operating loss is $(50,000). Determine the (a) unit contribution margin, (b) contribution margin ratio, and (c) fixed costs per unit at production of 25,000 units.

---

Definitions:

Genetic Variation

The diversity of genetic characteristics within a species or population, which is a result of mutations, genetic recombination, and other processes.

Deleterious Allele

A version of a gene that, on average, decreases the fitness of the organism carrying it.

mRNA Transcript

A single-stranded RNA molecule that is complementary to one of the DNA strands of a gene, serving as a template for protein synthesis in the process of translation.

Transcription

The process by which the genetic information in DNA is copied to messenger RNA, preceding protein synthesis.