A Project Has a Contribution Margin of $2

question 70

Multiple Choice

A project has a contribution margin of $2.16 per unit.If the sales price per unit is $11 and the fixed costs are $24,700,what is the amount of total costs at a production level of 6,000 units? Ignore depreciation.

• A)$65,165
• B)$81,080
• C)$57,460
• D)$68,221
• E)$77,740

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Definitions:

Commissions

Payments or earnings based on a percentage of the sales made by a salesperson or agent.

Median

The middle value in a data set when the values are arranged in ascending or descending order; if there is an even number of observations, it is the average of the two middle values.

Poker Players

Individuals who engage in the card game poker, either as a hobby or professionally.

Skewed

describes a distribution that is asymmetrical, with a majority of values lying to one side of the mean.