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.

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Definitions:

Physical Separation

The process of establishing a distance or barrier between objects or individuals, often for safety, privacy, or organizational purposes.

Smooth ER

The smooth endoplasmic reticulum is a membrane-enclosed organelle found in eukaryotic cells, involved in lipid synthesis, detoxification, and calcium ion storage.

Phospholipids

A type of lipid molecule that forms the primary component of all cell membranes, consisting of two fatty acids and a phosphate group attached to glycerol.

Cell Membranes

Cell membranes are thin, flexible barriers that surround cells, regulating the passage of substances in and out of the cell, and providing structural support.