Stanley's Candies Is Considering Building a New Plant in Europe

question 195

Multiple Choice

Stanley's Candies is considering building a new plant in Europe.It predicts sales at the new plant to be 40,000 units at $4.00/unit.Below is a listing of estimated expenses.

A European firm was contracted to sell the product and will receive a commission of 10% of the sales price.No U.S.home office expenses will be allocated to the new facility.
The contribution margin ratio for Stanley's Candies is

• A)157.50%.
• B)57.50%.
• C)42.50%.
• D)52.50%.

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Definitions:

Psychosexual Stage

A concept in Freudian psychology referring to the series of developmental stages in childhood, each characterized by a different focus of libido or sexual drive.

Conscious Mind

The aspect of the mind that encompasses thoughts, feelings, and perceptions that a person is currently aware of.

Defense Mechanisms

Psychological strategies employed unconsciously to protect oneself from anxiety-arising thoughts or feelings.

Threatening Impulses

Internal urges or desires that are perceived as a danger or threat to one's well-being or the social order.