Olympus Company Sells 1 400 Units Per Month at a Price

question 62

Multiple Choice

Olympus Company sells 1 400 units per month at a price of $28.00 per unit. The variable cost is $22.50 per unit. How much is the total contribution margin? (Please round to nearest whole dollar.)

• A)$6 750
• B)$7 700
• C)$39 200
• D)$9 500

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Definitions:

Hourly Rate

The amount of money paid for each hour of work, commonly used for calculating wages of part-time or contract employees.

Gross Pay

The total amount earned by an employee before any deductions or taxes are applied.

FICA-OASDI

Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance, a U.S. payroll tax to fund Social Security.

State Unemployment Tax

A tax imposed by state governments on employers to fund unemployment insurance benefits for workers who lose their jobs.