Ginger Company's Product Has a Contribution Margin Per Unit of $11.25

question 176

Multiple Choice

Ginger Company's product has a contribution margin per unit of $11.25 and a contribution margin ratio of 22.5%. What is the selling price of the product?

• A) $5.
• B) $20.
• C) $30.
• D) $40.
• E) $50.

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Definitions:

EPS Growth Rate

The annual rate at which a company's earnings per share (EPS) has grown or is projected to grow.

Rate of Return

The profit or deficit experienced by an investment over a certain period, represented as a percentage of the investment's initial cost.

EPS

A rephrased definition: The portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company’s financial health.

Press Release

An official statement issued to media outlets providing information on a particular matter or event associated with an organization.