Wiser Group Sells a Single Product for $30 Per Unit

question 271

Multiple Choice

Wiser Group sells a single product for $30 per unit. The variable costs for each unit are $7.50, while the total fixed costs are $4,500. If a 10% sales commission is introduced what is the new Contribution Margin Ratio?

• A) 72.5%
• B) 65%
• C) 75%
• D) No Change

Recognize the differences between par value and no-par value stock.

Calculate dividends to be distributed under different preferred stock conditions.

Journalize stock transactions, including issuance for cash, exchange for assets, and stock subscriptions.

Understand the treatment of stock issued at par, above par, and below par.