Dorian Company Produces and Sells a Single Product

question 87

Multiple Choice

Dorian Company produces and sells a single product. The product sells for $60 per unit and has a contribution margin ratio of 40%. The company's monthly fixed expenses are $28,800.


-What is the variable expense per unit?

• A) $31.20 per unit.
• B) $24.00 per unit.
• C) $36.00 per unit.
• D) $28.80 per unit.

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Definitions:

Free Blacks

African-American persons not held in slavery; immediately before the Civil War, there were nearly a half million in the United States, split almost evenly between North and South.

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The highest judicial body in the United States, established by the Constitution to have the ultimate authority in legal matters and disputes.

John Frémont

John Frémont was an American explorer, politician, and soldier known for his role in mapping the Oregon Trail and his efforts in California during the Mexican-American War; he was also a candidate for President of the United States in 1856.