Avia Company Sells a Product for $120 Per Unit

question 54

Multiple Choice

Avia Company sells a product for $120 per unit.Variable costs are $80 per unit,and fixed costs are $1200 per month.The company expects to sell 670 units in September.The unit contribution margin is ________.

• A) $40 per unit
• B) $80 per unit
• C) $200 per unit
• D) $120 per unit

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Definitions:

Net Exports

The value of a country's total exports minus its total imports, reflecting the balance of trade.

Capital Deepening

An increase in the amount of capital per worker; one source of rising labor productivity.

Capital Per Worker

A ratio measuring the amount of capital available to each worker, often used as an indicator of labor productivity.

Developed Country

A nation with a high level of industrialization, a high standard of living, and a well-developed infrastructure.