Vicade Has 1,000 Commercial Video Game Machines in Inventory Produced

question 74

Multiple Choice

Vicade has 1,000 commercial video game machines in inventory produced at a cost of $400 each (60% variable and 40% fixed) . The machines were to have been sold for $1,000 each. However, the machines currently contain a minor malfunction reducing their selling price to $150 each. The company could correct the malfunction at a variable cost of $250 each and then sell the machines for $550 each.
If the games are reworked, what will be the contribution per unit from doing so?

• A) $350
• B) $300
• C) $150
• D) $100

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Definitions:

Supervisors

Individuals or managers within an organization responsible for overseeing the work and performance of employees.

Narrowing

The process of reducing or limiting the scope or breadth of something, often to focus more closely on a specific aspect.

Focus

The concentration of attention or energy on a specific task, object, or activity.

Purpose

The reason for which something is done or created, or for which something exists.