The Selling Price of a Unit Is $20 and the Variable

question 83

Multiple Choice

The selling price of a unit is $20 and the variable product cost per unit is $14.In addition, a sales commission of 5% is paid on each sale.If the variable product cost per unit increases by 1%, what will be the new contribution margin per unit?

• A)$4.86
• B)$5.10
• C)$5.16
• D)$6.00

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Definitions:

Spans of Control

The number of subordinates or tasks that one manager or leader can effectively oversee or manage.

Middle Managers

Organizational employees who oversee the work of junior staff while reporting to higher management, acting as a linkage within the management hierarchy.

Integrating Mechanisms

Methods or processes used to ensure different departments or units within an organization work together effectively towards common goals.