Spice Company Has a Product Which Sells for $150 and Has

question 67

Multiple Choice

Spice Company has a product which sells for $150 and has a unit contribution margin of $75.It has fixed costs of $35/unit at the current production volume.Spice Company's contribution margin ratio is

• A)23%.
• B)50%.
• C)37%.
• D)73%.

---

Definitions:

Process

A sequence of measures or procedures followed to accomplish a specific goal.

S Charts

A type of control chart used to monitor the variability of a process over time by charting the standard deviation or range of the sample.

Production Process

The series of steps involved in creating a product, from raw materials to the final output.

Assignable Variation

Variation in a process that can be traced to specific causes, as opposed to random or inherent variation.