Kent CoManufactures a Product That Sells for $50

question 57

Multiple Choice

Kent Co.manufactures a product that sells for $50.00 and has variable costs of $24.00 per unit.Fixed costs are $260,000.Kent can buy a new production machine that will increase fixed costs by $11,400 per year,but will decrease variable costs by $3.50 per unit.Compute the contribution margin per unit if the machine is purchased.

• A)$22.50.
• B)$26.00.
• C)$29.50.
• D)$28.50.
• E)$27.50.

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Definitions:

Iris

The colored part of the eye surrounding the pupil, responsible for controlling the diameter and size of the pupil and thus the amount of light reaching the retina.

Light

Light is a form of electromagnetic radiation visible to the human eye, essential for sight and involved in a variety of biological and technological processes.

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, contributing to the eye's focusing power.

Visual Migraine

A neurological syndrome that can cause visual disturbances such as temporary blindness, blurred vision, or light flashes.