Using the Contribution Margin Approach,find the Contribution Margin Ratio for Consumer

question 83

Multiple Choice

Using the contribution margin approach,find the contribution margin ratio for Consumer Products if the selling price per unit is $15,the variable cost per unit is $7.50,and the fixed costs are $8,000.

• A)25%
• B)75%
• C)50%
• D)100%

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Definitions:

Agent of Necessity

A person who is appointed to act on behalf of another in situations of urgent necessity, without prior authorization from the principal.

Extravagance

The act or habit of spending more money than is necessary or wise; often associated with lavish or luxurious expenditure.

Credit Card

A plastic card issued by banks or financial institutions allowing the holder to borrow funds at the point of sale, which they then pay back at a later date.

Non-necessary Purchases

Expenditures on items or services that are not essential for basic living or business operations.