The Following Data Relate to a Company That Produces and Sells

question 35

Multiple Choice

The following data relate to a company that produces and sells a travel guide that is updated monthly:
$\begin{array} { | l | r | } \hline \text { Fixed costs: } & \\\hline \text { Copy editing } & \$ 6,000 \\\hline \text { Art work } & \$ 2,000 \\\hline \text { Typesetting } & \$ 72,000 \\\hline\end{array}$
$\begin{array} { | l | l | } \hline \text { Variable costs: } & \\\hline \text { Printing and binding } & \$ 3.20 \text { per copy } \\\hline \text { Bookstore discounts } & \$ 4.00 \text { per copy } \\\hline \text { Salespersons' commissions } & \$ 0.50 \text { per copy } \\\hline \text { Author's royalties } & \$ 2.00 \text { per copy }\\\hline \end{array}$ Each book sells for $20.00. The company sold 8,000 books in June and 10,000 books in July.




-What is the unit contribution margin per book?

• A) $10.30.
• B) $14.30.
• C) $10.80.
• D) $8.30.

---

Definitions:

Significant Life Change

Major events or transitions in an individual's life that have a lasting impact on their daily living and can include changes in family, career, or health.

Stressor

The external or internal force that brings about the stress.

Psychological Interpretation

The process of analyzing behavior, symbols, or events to gain insight into the underlying psychological processes and motives.

Internal Reaction

The psychological and emotional response of an individual to external stimuli or events.