If the Unit Sales Price Is $12, Variable Costs Are

question 68

Multiple Choice

If the unit sales price is $12, variable costs are $6 per unit and fixed costs are $26,000 what is the contribution ratio per unit?

• A) 40%.
• B) 50%.
• C) 60%.
• D) 70%.

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Definitions:

Punitive Damages

Monetary compensation awarded to a plaintiff that goes beyond what is necessary to compensate for losses and is intended to punish the defendant for egregious behavior.

Compensate

To compensate means to provide something, typically money, in recognition of loss, suffering, or damage incurred; a form of recompense.

Foreseeability

A legal principle referring to the predictability or anticipation of risks at the time of a contractual agreement.

Proximate Cause

Legal cause; exists when the connection between an act and an injury is strong enough to justify imposing liability.