Spice Company Has a Product Which Sells for $150 and Has

question 67

Multiple Choice

Spice Company has a product which sells for $150 and has a unit contribution margin of $75.It has fixed costs of $35/unit at the current production volume.Spice Company's contribution margin ratio is

• A)23%.
• B)50%.
• C)37%.
• D)73%.

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Definitions:

Matorral

A type of scrubland or shrubland plant community found in parts of the Mediterranean region and western North America.

Chaparral

A biome characterized by dense, evergreen shrubbery found in areas with hot, dry summers and mild, wet winters, primarily in the southwestern United States.

Bison

Large, grass-eating mammals found primarily in North America, known for their large size, shaggy hair, and horns.

Temperate Grassland

A biome characterized by wide-open spaces with grasses as the dominant vegetation, experiencing moderate rainfall and distinct seasonal temperature variations.