DJ Studios Is Considering Opening a New Location

question 212

Multiple Choice

DJ Studios is considering opening a new location. This location is estimated to bring in sales of $398,000 a year with total variable costs of $62,000, total fixed costs of $274,500, and estimated
Unit sales of 1,200. The depreciation expense is $18,900 a year. What is the contribution margin per
Unit?

• A) $103
• B) $117
• C) $280
• D) $284
• E) $291

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Definitions:

Sexual Isolation

A mechanism of evolutionary divergence where different species or populations can no longer interbreed due to behavioral or genetic barriers.

Gametic Isolation

A prezygotic barrier where gametes (egg and sperm) of different species are incompatible, preventing fertilization.

Mechanical Isolation

A form of reproductive barrier where differences in the size and shape of reproductive organs prevent mating between species.

Sympatric Speciation

The evolution of a new species within the same geographic region as the parental species. Compare with allopatric speciation.