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

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Definitions:

MACRS Depreciation

Stands for Modified Accelerated Cost Recovery System, which is a method of depreciation in the U.S. that allows for the accelerated write-off of property under certain conditions.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Depreciation Schedule

A table that shows the decline in value of an asset over time, which impacts financial and tax reporting.

Corporate Tax Rate

The percentage of a corporation's profit that is paid as tax to the government.