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A Company Has a Contribution Margin Per Unit of $8

question 83

Multiple Choice

A company has a contribution margin per unit of $8.25 and a contribution margin ratio of 12%.What is the selling price of the product?


Definitions:

Adverse Selection

A situation in insurance and finance where individuals with higher risks are more likely to purchase or participate in a plan, leading to higher than expected costs for insurers or lenders.

Marginal Benefit

The extra utility or satisfaction obtained through the consumption of an additional unit of a good or service.

Pollution Abatement

Actions or measures taken to reduce, control, or eliminate pollution from various sources.

Producer Surplus

The difference between the actual price a producer receives (or producers receive) and the minimum acceptable price; the triangular area above the supply curve and below the market price.

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