Younes Inc

question 100

Multiple Choice

Younes Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as P06. Data concerning this product are given below:
The above per unit data are based on annual production of 4,000 units of the component. Assume that direct labor is a variable cost.
-Refer to the original data in the problem.What is the current contribution margin per unit for component P06 based on its selling price of $220 and its annual production of 4,000 units?

• A) $51 per unit
• B) $137 per unit
• C) $169 per unit
• D) $173 per unit

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Definitions:

Capital Account

An account on the balance sheet that reflects the net worth and equity of an individual or business.

Withdrawals

Amounts taken out from a business by its owners for personal use, often affecting the owner's capital account.

Ending Inventory

The worth of products on hand for sale at the conclusion of an accounting cycle, determined by adding the starting inventory to acquisitions and then subtracting the cost of goods sold.

Merchandise Inventory

Goods or products that a company holds for the purpose of sale to customers in the ordinary course of business.