Zap Video Inc

question 116

Multiple Choice

Zap Video Inc. produces two basic types of video games, Clash and Slash. Pertinent data follow (DLH = direct labor hour) :There is insufficient labor capacity in the plant to meet the combined demand for both Clash and Slash.
Both products are produced through the same production departments.

The contribution margin per unit for Clash is:

• A) $53.
• B) $35.
• C) $47.
• D) $42.
• E) $23.

---

Definitions:

Seasonal

The term seasonal refers to fluctuations in demand, supply, or particular phenomena that recur with similar patterns at certain times of the year.

June 1 Dating

A payment term used in trading where the payment is due on or after June 1st.

3/20, Net 30

A payment term indicating that a 3% discount is available if payment is made within 20 days; otherwise, the full amount is due within 30 days.

Minimizing Cash Holdings

A financial strategy focused on reducing the amount of cash a company or individual keeps on hand, often to boost efficiency or investment returns.