Zeke Company Sells 25,000 Units at $21 Per Unit

question 19

Multiple Choice

Zeke Company sells 25,000 units at $21 per unit. Variable costs are $10 per unit, and fixed costs are $75,000. The contribution margin ratio and the unit contribution margin are:

• A) 47% and $11 per unit
• B) 53% and $7 per unit
• C) 47% and $8 per unit
• D) 52% and $11 per unit

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Definitions:

Product Line

A group of related products under a single brand sold by the same company.

Product Mix

The combination of all the products a company sells.

Marketing Mix

A framework used by marketers consisting of the four Ps: Product, Price, Place, and Promotion.

Service

Intangible activities or benefits that an entity provides to consumers, which do not result in ownership of anything physical.