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

question 100

Multiple Choice

A product sells for $5, and has unit variable costs of $3. This product accounts for $20,000 in annual sales, out of the firm's total of $60,000. When performing multiproduct break-even analysis, what is the weighted contribution of this product?

• A) 0.133
• B) 0.333
• C) 0.40
• D) 0.667
• E) $1.667

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Definitions:

Feedback

A response or reaction to a product, service, or process, used for improvement or assessment purposes.

IMC Efforts

Initiatives and activities focused on aligning and integrating all marketing communication tools, avenues, and sources within a company into a seamless program.

Sales Data

Information that pertains to the quantity of products sold and the revenue generated from these sales, often used to inform business decisions.

Noise

Unwanted or disruptive sound, but in communication, it refers to any external interference that affects the clarity or accuracy of the message transmission.