Goldfarb Company Manufactures and Sells Toasters

question 46

Multiple Choice

Goldfarb Company manufactures and sells toasters.Each toaster sells for $23.75 and the variable cost per unit is $16.25.Goldfarb's total fixed costs are $25,000,and budgeted sales are 8,000 units.What is the contribution margin per unit?

• A)$7.50.
• B)$16.25.
• C)$23.75.
• D)$60,000.
• E)$1.25.

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Definitions:

360-Day Year

The 360-day year is used in financial calculations to simplify interest calculations, assuming each month has 30 days.

Maturity Value

The total amount payable to an investor at the end of a fixed term investment, including the principal and any accrued interest.

Days' Sales in Receivable

A financial metric that indicates the average number of days it takes for a company to collect payment after a sale has been made, illustrating the liquidity and efficiency of the company's receivables.

Financial Records

Documents and files that track the financial activities of a person or entity, providing a basis for financial planning and decision-making.