A Product Sells for $5, and Has Unit Variable Costs

question 194

Multiple Choice

A product sells for $5, and has unit variable costs of $3. The annual sales units for this product are 5,000. The firm has a total annual sales revenue of $60,000. When performing multiproduct break-even analysis, what is the weighted contribution of this product?

• A) 0.133
• B) 0.083
• C) 0.167
• D) 0.417
• E) $1.667

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Definitions:

Self-serving

Acting in a way that benefits oneself, often at the expense of others or ethical principles.

Conduct

The manner in which an individual behaves or performs in a professional or personal setting.

Ethical Reasoning

involves using moral principles and values to evaluate and make decisions about what is right or wrong in various situations.

Happiness

A state of well-being characterized by emotions ranging from contentment to intense joy.