Use the Information Below to Answer the Following Question(s)

question 207

Multiple Choice

Use the information below to answer the following question(s) .
The following selected data relates to Lazarus Corporation:

-If sales revenue per unit increases to $27 and 8,000 units are sold, what is the contribution margin at the Lazarus Corporation?

• A) $50,000
• B) $72,000
• C) $56,000
• D) $360,000

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Definitions:

Cash Dividend

A payment made by a company out of its profits to shareholders, usually in the form of cash.

Common Stock

The most prevalent form of equity ownership, representing shares in the ownership of a company.

Dividend Decision

The decision by management regarding the portion of earnings paid to shareholders as dividends. The alternative is to retain the money, investing it in the company for future growth.

Cash Dividends

Distributions made to shareholders by a company, often in the form of profit sharing.