Kingston Company Sells Its Product for $200 Per Unit What Is Kingston Company's Contribution Margin Ratio?
A) 30%
B)

question 5

Multiple Choice

Kingston Company sells its product for $200 per unit.The company's accountant provided the following cost information: $\begin{array}{|l|l|}\hline \text { Manufacturing costs } & \$ 25,000+40 \% \text { of sales } \\\hline \text { Selling costs } & \$ 10,000+20 \% \text { of sales } \\\hline \text { Administrative costs } & \$ 15,000+10 \% \text { of sales } \\\hline\end{array}$ What is Kingston Company's contribution margin ratio?

• A) 30%
• B) 15%
• C) 35%
• D) 20%

Learn about the safeguards against liabilities for accountants, including the role of disclaimers.

Understand the specific legal standards and defenses related to accountants in the context of securities laws.

Awareness of the impacts of not adhering to GAAP and GAAS on accountant liabilities.

Familiarity with the Sarbanes-Oxley Act and its implications for accounting practices.

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Definitions:

Foot-In-The-Door Technique

A persuasion strategy that involves getting a person to agree to a small request to increase the chances of agreeing to a larger request later.

Legitimization-Of-Paltry-Favors Technique

A persuasion technique where a small favor is deemed acceptable to encourage people to contribute or comply with a larger request.

Reciprocation

Reciprocation involves the mutual exchange of actions, goods, services, or feelings, often as part of social or relationship norms.

Disrupt-then-reframe Technique

A persuasive strategy involving the initial disruption of normal thought processes followed by offering a new frame or perspective that makes the initial proposition more acceptable.