The Following Selected Data Relates to Lazarus Corporation -If Sales Revenue Per Unit Increases to $27 and 8,000

question 37

Multiple Choice

The following selected data relates to Lazarus Corporation: $$\begin{array} { | l | r | } \hline \text { Tatal fixed costs } & \$ 22,000 \\\hline \text { Sale price per unit } & \$ 25 \\\hline \text { Variable costs per urit } & \$ 18 \\\hline\end{array}$$
-If sales revenue per unit increases to $27 and 8,000 units are sold,what is the contribution margin?

• A)$ 50,000
• B)$ 72,000
• C)$ 56,000
• D)$360,000

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Definitions:

Book Value

The net value of a company's assets as recorded on the balance sheet, calculated by subtracting liabilities from the total value of assets.

Adjusted Trial Balance

A trial balance prepared after adjusting entries are made, ensuring the accuracy of financial statements by balancing debits and credits.

Ledger Balance

The closing balance of an account in the ledger at a specific point in time, reflecting all transactions.

Contrast Baths

A form of therapy involving the alternation between hot and cold water baths to manage pain, swelling, or promote healing.