Top Breed Meats Has Computed Its fiXed Costs to Be

question 41

Multiple Choice

Top Breed Meats has computed its fixed costs to be £.60 for every pound of meat it sells given an average daily sales level of 500 pounds.It charges £3.89 per pound of top-grade ground beef.The
Variable cost per pound is £2.99.What is the contribution margin per pound of ground beef sold?

• A)£0.30
• B)£0.60
• C)£0.90
• D)£2.99
• E)£3.89

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Definitions:

Net Profit

The financial gain achieved after subtracting all expenses, taxes, and costs from total revenue.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs, indicating the company's profitability.

Depreciation

The accounting process of allocating the cost of tangible assets over their useful lives, reflecting wear and tear or obsolescence.

Inventory

A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold.