The Following Data Relate to a Company That Produces and Sells

question 5

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 contribution margin ratio for the book?

• A) 71.5%.
• B) 54.0%.
• C) 51.5%.
• D) 51.9%.

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Definitions:

Later-born Children

Children born after the first child in a family, who may experience different parental expectations, resource allocation, and sibling dynamics.

Social Skills

The abilities necessary to interact and communicate effectively with others in various social situations.

Peers

Individuals who are of approximately the same age or stage of development, often influencing social and cognitive behaviors.

Early Friendships

Relationships formed between young children, playing a crucial role in social development and emotional well-being.