Figure 4-3

question 152

Multiple Choice

Figure 4-3.Paney Company makes calendars. Information on cost per unit is as follows:
Fixed marketing expense totaled $13,000 and fixed administrative expense totaled $35,000. The price per calendar is $10.
-Refer to Figure 4-3. What is the contribution margin per unit?

• A) $6.30
• B) $5.00
• C) $6.40
• D) $6.00
• E) $5.40

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Definitions:

Inelastic

Describes demand that is relatively unresponsive to price changes, meaning the percentage change in quantity demanded is smaller than that in price.

Consumers

Individuals or organizations that use economic goods and services generated within the economy, directly affecting demand trends and market dynamics.

Corporate Taxes

Taxes levied by governments on the income or profit of corporations and businesses.

Profits

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.