The Contribution Margin Per Unit of Constraint Is Calculated as

question 129

Multiple Choice

The contribution margin per unit of constraint is calculated as

• A)contribution margin per unit × constraint per unit.
• B)contribution margin per unit × units per constraint.
• C)contribution margin per unit ÷ units per constraint.
• D)contribution margin per unit + constraint per unit.

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Definitions:

Face Value

Face value is the nominal value stated on a financial instrument such as a bond or a stock certificate, important in determining its maturity value or dividend payments.

Required Rate

The minimum expected rate of return on an investment, necessary to compensate for the risk taken.

Floating Rate Bond

A type of bond whose interest payments vary with changes in market interest rates, also known as a floater or variable rate bond.

Variable Amount

A sum that can change over time or depending on conditions, in contrast to a fixed amount.