Southwest Industries Produces a Sports Glove That Sells for $15

question 83

Multiple Choice

Southwest Industries produces a sports glove that sells for $15 per pair. Variable expenses are $8 per pair and fixed expenses are $35,000 annually.
-The contribution margin ratio is closest to:

• A)46.7%
• B)53.3%
• C)33.3%
• D)42.9%

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Definitions:

Apples

A type of fruit that is cultivated worldwide and comes in various colors, including red, green, and yellow, known for its crisp texture and sweet to tart flavor.

Bananas

A common fruit known for its elongated shape and soft, starchy interior, often consumed as a snack or used in cooking.

Utility Function

A mathematical representation of how a consumer ranks different bundles of goods according to the levels of satisfaction they provide.

Marginal Rate of Substitution

The rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility.