Answer the Following Questions Using the Information Below

question 131

Multiple Choice

Answer the following questions using the information below:
Holly's Ham, Inc. sells hams during the major holiday seasons. During the current year 11,000 hams were sold resulting in $220,000 of sales revenue, $55,000 of variable costs, and $24,000 of fixed costs.
-Kenefic Company sells its only product for $9 per unit, variable production costs are $3 per unit, and selling and administrative costs are $1.50 per unit. Fixed costs for 10,000 units are $5,000. The contribution margin is:

• A)$6 per unit
• B)$4.50 per unit
• C)$5.50 per unit
• D)$4 per unit

---

Definitions:

Military Establishment

This refers to the structures, institutions, and personnel that constitute a country's armed forces and defense infrastructure.

Mikhail Gorbachev

The last leader of the Soviet Union, serving from 1985 to 1991, known for his policies of glasnost (openness) and perestroika (restructuring).

Soviet Union

A former federation of communist republics that existed from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR).

U.S. Economy

The economic system of the United States, characterized by a mixed economy with a high level of output, technological innovation, and a diverse industrial base.