Gao Corp Produced 2,000,000 Units This Year, at a Variable Cost

question 69

Multiple Choice

Gao Corp. produced 2,000,000 units this year, at a variable cost of $3 per unit. Its fixed costs are $1,200,000 per year. It sold all 2,000,000 units produced at $5 per unit. Its total contribution margin for the year was

• A) Zero
• B) 2400000
• C) 2800000
• D) 4000000

---

Definitions:

Railroad Expansion

The rapid growth of railroad networks in the 19th century, facilitating economic development, westward expansion, and changes in transportation across nations.

Dawes Severalty Act

A 1887 U.S. law aimed at assimilating Native Americans into American society by encouraging private property ownership and education, leading to significant loss of tribal land.

United States Indian Policy

The set of laws and guidelines developed by the U.S. government to manage relations and affairs with the Native American tribes and peoples.

Water Rights

The legal rights to use water from a river, stream, or other bodies, typically emphasizing the right of landowners to access or utilize adjoining watercourses.