Answer the Following Questions Using the Information Below:
the Following

question 116

Multiple Choice

Answer the following questions using the information below:
The following information pertains to Bondi Creations:
$\begin{array}{ll}\hline & \\\hline \text { Manufacturing costs } & \$ 1,500,000 \\\hline \text { Units manufactured } & 30,000 \\\hline \text { Units sold } & 29,500 \text { units sold for } \$ 85 \text { per unit } \\\hline \text { Beginning inventory } & 0 \text { units } \\\hline\\\hline\end{array}$
-What is the average manufacturing cost per unit?

• A)$50.00
• B)$17.65
• C)$85.00
• D)$50.85

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Definitions:

Contribution Margin Ratio

A financial metric that measures a product's profitability by calculating the difference between its sales and variable costs as a percentage of total sales.

Fixed Costs

Expenses that do not change with the level of production or sales over a certain range and time period.

Variable Costs

Costs that vary in direct proportion to changes in the level of production or sales volume.

Variable Costs

Costs that change in proportion to the level of production or activity, such as materials and labor.