Wang CoManufactures and Sells a Single Product That Sells for $450

question 32

Multiple Choice

Wang Co.manufactures and sells a single product that sells for $450 per unit; variable costs are $270 per unit.Annual fixed costs are $800,000.Current sales volume is $4,200,000.
-Compute the contribution margin per unit.

• A)$450.
• B)$270.
• C)$200.
• D)$190.
• E)$180.

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Definitions:

Reorganization

The process of restructuring a company's business or legal structures for efficiency, to recover from financial distress, or to better align with strategic goals.

Decreasing Expenses

The process of reducing the costs incurred by a business in order to increase profitability.

Workforce Reduction

A strategy employed by businesses to decrease their number of employees through layoffs, attrition, or retirement schemes to cut costs or improve efficiency.

Underutilized Assets

Resources or assets that are not being used to their full potential within a business or organization.