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:

Procedural Justice

The fairness in the processes that resolve disputes and allocate resources, emphasizing transparency, and consistency in the procedures.

Job Evaluation

A systematic process of determining the relative worth of jobs to establish which jobs should be paid more than others within an organization.

Employees' Perceptions

The way employees view or interpret actions, policies, and the environment of their workplace.

Nonexempt

Refers to employees who are covered by the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA).