A Product Has a Contribution Margin of $2

question 23

Multiple Choice

A product has a contribution margin of $2.50 per unit and a selling price of $25 per unit.Fixed costs are $20,000.Assuming new technology increases the unit contribution margin by 50 percent but increases total fixed costs by $13,750,what is the new break-even point in units?

• A) 3,667 units
• B) 3,333 units
• C) 13,500 units
• D) 9,000 units

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Definitions:

Sexual Orientation

An enduring pattern of emotional, romantic, or sexual attractions to men, women, or both sexes, indicating the direction of a person's sexual interest.

Gay Males

Men who are romantically or sexually attracted to other men.

Straight

Not bent or curved; extending in the same direction at all points; often used to describe something that is direct or unswerving.

Sexually Attracted

This term describes the feeling of being drawn to another person in a sexual manner, involving a desire for sexual contact and intimacy.