A Shelter Sells Products and It Contributes Proceeds to Needy

question 62

Multiple Choice

A shelter sells products and it contributes proceeds to needy people in the community.The selling price of a product is $80.00 and the manager at the shelter reported that the variable cost per unit is $25.00.
Required:
Compute the contribution margin per unit.

• A)$40 per unit
• B)$45 per unit
• C)$50 per unit
• D)$55 per unit
• E)$60 per unit

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Definitions:

Single-Step Income Statement

An income statement format that lists all revenues and then deducts all expenses to find the net income with only one subtraction.

Multiple-Step Income Statement

A detailed income statement that separates operational revenue and expenses from non-operational ones, presenting a clear view of a company’s operational efficiency.

Income Statements

A financial statement that shows a company’s revenues, expenses, and profits or losses over a specific period.

Wholesalers

Businesses that buy goods in bulk from manufacturers or distributors and then sell them in smaller quantities to retailers or other businesses.