Kogler Corporation's Relevant Range of Activity Is 7,000 Units to 11,000

question 296

Multiple Choice

Kogler Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: If the selling price is $29.00 per unit, the contribution margin per unit sold is closest to:

• A) $15.80
• B) ($0.80)
• C) $5.75
• D) $18.10

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Definitions:

Marginal Cost

The outlay involved in generating one more unit of a product.

Buyer's Willingness

The maximum amount a consumer is ready to pay for a good or service, reflecting the value they place on it.

Output Level

The quantity of goods or services produced by a firm or economy at a given time.

Price Discriminate

The practice of selling the same product to different customers at different prices, based on what each customer is willing to pay.