Carbon,Inc What Is the Contribution Margin of Alpha?
A)$124,000
B)$644,000
C)$400,000

question 26

Multiple Choice

Carbon,Inc.reports the following information for April: $$\begin{array} { | l | r | r | } \hline & \text { Alpha } & \text { Beta } \\\hline \text { Units sold } & 2,000 \text { units } & 800 \text { units } \\\hline \text { Sales price per unit } & \$ 350 & \$ 600 \\\hline \text { Variable manufacturing cost per unit } & 150 & 500 \\\hline \text { Sales commission per unit: } & & \\\hline \text { Alpha: } 8 \% \text { of sales price } & 28 & \\\hline \text { Beta: } 8 \% \text { of sales price } & & 48 \\\hline\end{array}$$ What is the contribution margin of Alpha?

• A)$124,000
• B)$644,000
• C)$400,000
• D)$344,000

---

Definitions:

Consumer Surplus

The distinction between the price consumers are inclined to pay for a product or service and what they ultimately pay.

Surplus II

The condition where the quantity supplied of a good exceeds the quantity demanded, causing downward pressure on the market price.

Equilibrium Price

The cost at which the amount of products available for sale matches the volume of products consumers want to buy.

Equilibrium Quantity

The quantity at which the supply and demand for a good or service are equal at a certain price level, leading to market equilibrium.