Answer the Following Questions Using the Information Below

question 10

Multiple Choice

Answer the following questions using the information below:
Shine Jewelry sells 400 units resulting in $7,000 of sales revenue, $3,000 of variable costs, and $1,500 of fixed costs.
-Contribution margin per unit is ________.

• A) $4.00
• B) $11.00
• C) $10.00
• D) $8.00

---

Definitions:

Equity Multiplier

A financial ratio indicating the portion of a company’s assets that are financed by stockholder's equity.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets.

Total Asset Turnover

A financial ratio that measures how efficiently a company uses its assets to generate sales by dividing net sales by total assets.