A Product Sells for $5, and Has Unit Variable Costs

question 5

Multiple Choice

A product sells for $5, and has unit variable costs of $3. This product accounts for $20,000 in annual sales, out of the firm's total of $60,000. When performing multiproduct break-even analysis, the weighted contribution of this product is approximately

• A) 0.133
• B) 0.200
• C) 0.40
• D) 0.667
• E) $1.667

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Definitions:

Holder

An individual or entity that possesses a negotiable instrument, such as a check or promissory note, and has the right to enforce it.

Bearer

Pertaining to negotiable instruments, it refers to the individual possessing the document entitled to the rights therein.

Instrument

A legal document formally evidencing a right or obligation, such as contracts, wills, or promissory notes.

Good Faith

A principle that emphasizes honesty, fairness, and integrity in the fulfillment of contractual obligations or in negotiations.