Date Company Makes Calendars -Refer to the Figure

question 158

Multiple Choice

Date Company makes calendars. Information on cost per unit is as follows:
Fixed marketing expense totalled $13,000, and fixed administrative expense totalled $35,000. The price per calendar is $10.
$\begin{array}{lr}\text { Direct materials } & \$ 1.50 \\\text { Direct labour } & 1.20 \\\text { Variable overhead } & 0.90 \\\text { Variable marketing expense } & 0.40\end{array}$
-Refer to the Figure.What is the contribution margin per unit?

• A)$5.00
• B)$5.40
• C)$6.00
• D)$6.30

Understand the concept of risk aversion and how it affects decision-making in uncertain scenarios.

Calculate expected utility and apply it to financial decision-making.

Identify and describe the characteristics of risk-loving and risk-neutral behaviors.

Explain the significance of von Neumann-Morgenstern utility functions in the context of risky choices.

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Definitions:

Budget

A financial plan for a defined period, often one year.

Hierarchy of Effects

A model describing the stages a consumer passes through in the process from unawareness of a brand to purchasing it, including awareness, interest, desire, and action.

Interest Stage

A phase in the consumer decision process where individuals develop an interest in a product or service after becoming aware of it.

Awareness Stage

The initial phase in the buying process where potential customers first become aware of a product or service.