A Manufacturing Company Is Considering Producing a New Product

question 44

Multiple Choice

A manufacturing company is considering producing a new product. The variable cost of the new product is $60 per unit, and the total fixed costs are $75,000 for a month. The company could produce 1,500 units per month, and sell the product for $125 each. Calculate the unit contribution margin.

• A) 65
• B) 50
• C) 60
• D) 125
• E) 80

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Definitions:

UGC Contest

A competition designed to encourage users to submit user-generated content, often for marketing or engagement purposes.

Media Costs

Pertains to the expenses associated with purchasing advertising space in various media channels.

Social Media Marketing

The use of social media platforms and websites to promote a product, service, or brand to a broad audience.

Labor Costs

The total expenditure involved in compensating employees for their work, including wages, benefits, and any other forms of compensation.