A Company with Monthly Fixed Costs of $170,000 Expects to Earn

question 112

Multiple Choice

A company with monthly fixed costs of $170,000 expects to earn monthly operating income of $25,000 by selling 6,500 units per month. What is the company's expected unit contribution margin?

• A) $30.
• B) $28.
• C) $2.
• D) The information given is insufficient to determine unit contribution margin.

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Definitions:

Past Performance

An individual's or organization's previous accomplishments or results, often used as a predictor for future success.

Written Letters

A method of communication involving the sending of messages or information through physically written or printed text.

Reference

A recommendation or information provided by a person or source, vouching for the qualifications, character, or background of someone.

Behavioural Description Interviews

Behavioural Description Interviews are a type of job interview technique where candidates are asked to describe past behavior in specific situations to predict future performance.