Madden Enterprises Sells Two Products,Silver Models and Gold Models

question 218

Multiple Choice

Madden Enterprises sells two products,Silver models and Gold models.Madden Enterprises predicts that it will sell 6,000 Silver models and 4,000 Gold models in the next period.The unit contribution margins for Silver models and Gold models are $75 and $150,respectively.What is the weighted average unit contribution margin?

• A)$0.01
• B)$37.50
• C)$105.00
• D)$525.00

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Definitions:

Equivalent Tariff

A tariff level that would give the same protective effect to the domestic producers as a given non-tariff barrier does.

Yacht Industry

The sector of the economy that is involved in the design, construction, and sale of yachts, ranging from luxury to small racing models.

Tax Burden

The measure of taxes that an individual or entity must bear, often expressed as a percentage of income or GDP.

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