Tidy Turf,Inc

question 5

Multiple Choice

Tidy Turf,Inc.provides housekeeping services.The following financial data have been provided.

Calculate the contribution margin and the contribution margin ratio.(Round your contribution margin to the nearest dollar,and your contribution margin ratio to two decimal places. )

• A)$54,650;91.08%
• B)$39,650;66.08%
• C)$12,750;21.25%
• D)$18,650;31.08%

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Definitions:

Unit Elasticity

Unit elasticity refers to a situation where a change in the price of a good or service results in a proportionally equal change in the quantity demanded or supplied, indicating a unitary elasticity of demand or supply.

Maximum Total Revenue

The highest possible earnings that a firm can achieve from the sale of goods or services, typically found by optimizing price and quantity sold.

Price

The price necessary to acquire a good or service.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded by consumers.