A New Product Is Expected to Sell for $12

question 92

Multiple Choice

A new product is expected to sell for $12. The company would manufacture up to 22,000 units at a variable cost of $5 per unit. Fixed costs would be $150,000. Variable selling and administration expenses would amount to $2.50. Determine the contribution margin per unit and contribution margin rate.

• A) Per unit CM $4.50; CM rate = .375
• B) Per unit CM $5.50; CM rate = .395
• C) Per unit CM $6.50; CM rate = .415
• D) Per unit CM $7.50; CM rate = .435
• E) Per unit CM $8.50; CM rate = .455

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Definitions:

Traditional Chinese Values

The core principles and moral standards that have historically guided the behavior and societal practices in Chinese culture.

Organization's Culture

An assembly of mutual norms, values, and beliefs directing the behavior, emotions, and thoughts of workers in a business.

Organization's Discipline

The regulations, procedures, and norms established by an organization to regulate employee behavior and maintain order.

Job Design

The process of organizing tasks, duties, and responsibilities into a productive work unit within an organization.