A Project Has a Projected Sales Price of $99 a Unit,variable

question 63

Multiple Choice

A project has a projected sales price of $99 a unit,variable costs per unit of $58,annual fixed costs of $238,000,and annual depreciation of $139,000.The tax rate is 22 percent.What is the contribution margin for an analysis using sales units of 12,800?

• A)$27.06
• B)$38.97
• C)$22.41
• D)$41.00
• E)$42.64

---

Definitions:

MU y/ Pᵧ

MU y/ Pᵧ represents the marginal utility of good "y" divided by its price, a concept in economics used to analyze consumer choice, indicating the additional satisfaction per unit of currency spent on that good.

Maximize Utility

The economic principle of selecting the option that yields the highest satisfaction or benefit.

Quantities Y

Often refers to the output level or quantity of goods produced in economic models or equations.

Marginal Utility

The extra pleasure or advantage a customer gains by consuming an additional unit of a product or service.