Krepps Corporation Produces a Single Product

question 39

Multiple Choice

Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There was no beginning inventory. Assume that direct labor is a variable cost.The contribution margin per unit was:

• A) $23.80 per unit
• B) $31.00 per unit
• C) $25.60 per unit
• D) $19.00 per unit

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Definitions:

Interpersonal Trust

The confidence or belief in the reliability, integrity, and abilities of others on a personal level.

Pre-negotiation Planning

The process of preparing strategies, goals, and objectives before entering into negotiation talks.

Superior Negotiators

Individuals who possess exceptional skills in reaching agreements between parties for mutual benefit.

Common Ground

Shared interests, values, or beliefs that enable parties in a negotiation or dispute to find mutual agreement.