Answer the Following Questions Using the Information Below:
Bell Company

question 122

Multiple Choice

Answer the following questions using the information below:
Bell Company sells several products. Information of average revenue and costs is as follows:
$\begin{array}{lr}\text { Selling price per unit } & \$ 28.50 \\\text { Variable costs per unit: } & \\\text { Direct material } & \$ 5.25 \\\text { Direct manufacturing labor } & \$ 1.15 \\\text { Manufacturing overhead } & \$ 0.25 \\\quad \text { Selling costs } & \$ 1.85 \\\text { Annual fixed costs } & \$ 110,000\end{array}$
$\text { The company sells } 10,000 \text { units. }$
-The contribution margin per unit is ________.

• A) $15
• B) $20
• C) $22
• D) $125

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Definitions:

Henry Ford

An American industrialist and founder of the Ford Motor Company, who revolutionized factory production with his assembly-line methods.

Automobile Industry

The global industry involved in the design, development, manufacturing, marketing, and selling of motor vehicles.

Cost-Leadership Strategy

A competitive strategy focusing on producing goods or services at the lowest cost to outprice competitors.

Differentiation Strategy

A generic business strategy that requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments.