If the Contribution Margin on the Firm's Single Product Is

question 3

Multiple Choice

If the contribution margin on the firm's single product is $2.00 per unit and fixed costs are $60,000,what will the firm's net income be at sales of 30,000 units?

• A) $90,000
• B) $30,000
• C) $15,000
• D) $0

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Definitions:

Supply Chain

The network of manufacturers, suppliers, and logistics providers involved in producing and delivering a product to the end user.

Variance

A statistical measure of the dispersion showing how much the values in a data set diverge from the mean or expected value.

Wholesaler

A person or company that buys goods in large quantities from producers and sells them in smaller quantities to retailers or other wholesalers.

Retailer

A business or individual that sells goods or services directly to consumers, typically operating out of physical or online stores.