Kingston Company Sells Its Product for $200 Per Unit What Is Kingston Company's Contribution Margin Ratio?
A) 30%
B)

question 13

Multiple Choice

Kingston Company sells its product for $200 per unit.The company's accountant provided the following cost information: $$\begin{array} { l l l } \text { Manufacturing costs } & \$ 25,000 + 40 \% \text { of sales } \\\text { Selling costs } & \$ 10,000 + 20 \% \text { of sales } \\\text { Administrative costs } & \$ 15,000 + 10 \% \text { of sales }\end{array}$$ What is Kingston Company's contribution margin ratio?

• A) 30%
• B) 15%
• C) 35%
• D) 20%

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Definitions:

Expected Results

The anticipated outcomes or effects that are predicted based on specific actions, processes, or strategies.

Availability Heuristic

A cognitive bias in which people overestimate the importance or probability of something based on how readily it comes to mind.

Representativeness Heuristic

A cognitive bias in decision making, where the likelihood of an event is assessed based on how similar it is to a typical case.

Satisficing Heuristic

A decision-making process that seeks a satisfactory solution rather than an optimal one.