Wilson's Meats Has Computed Its Fixed Costs to Be

question 15

Multiple Choice

Wilson's Meats has computed its fixed costs to be $.60 for every pound of meat it sells given an average daily sales level of 500 pounds. It charges $3.89 per pound of top-grade ground beef. The variable cost per pound is $2.99. What is the contribution margin per pound of ground beef sold?

• A) $0.30
• B) $0.60
• C) $0.90
• D) $2.99
• E) $3.89

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Definitions:

Bond Investment

The purchase of bonds as a means of generating income or benefiting from appreciation, involving lending money to the issuer in exchange for periodic interest payments and the return of principal at maturity.

Purchase Price

The amount of money paid to acquire a product or service.

Consolidated Statements

Financial statements that aggregate the financial information of a parent company and its subsidiaries into one comprehensive financial report.

Accrued Interest

Interest that has been incurred but not yet paid.