The Selling Price of a Unit Is $20 and the Variable

question 96

Multiple Choice

The selling price of a unit is $20 and the variable product cost per unit is $14. In addition, a sales commission of 5% is paid on each sale. If the variable cost per unit $\textbf{ excluding }$ sales commission increases by 1%, what will be the new contribution margin?

• A)$4.86
• B)$5.10
• C)$5.16
• D)$6.00

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Definitions:

Type A Personality

A personality trait characterized by high levels of competitiveness, self-imposed stress, impatience, and a sense of urgency.

Employee Engagement

The level of enthusiasm and dedication a worker feels towards their job and company, which impacts their willingness to contribute to organizational success.

Job Satisfaction

The degree to which employees feel contentment or happiness with their jobs, considering aspects like work environment and compensation.

Locus of Control

An individual's belief about the extent to which the outcomes of their actions are under their own control versus externally controlled.