Brees Inc , a Company That Produces and Sells a Single

question 172

Multiple Choice

Brees Inc. , a company that produces and sells a single product, has provided its contribution format income statement for April. If the company sells 5, 800 units, its total contribution margin should be closest to:

• A)$55, 800
• B)$52, 200
• C)$6, 642
• D)$47, 000

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Definitions:

Pretax Return

The income a company generates before any taxes are subtracted.

Working Capital

The gap between an organization's current assets and its current liabilities, reflecting the business's short-term fiscal stability and operational effectiveness.

Salvage Value

The projected sales value of an asset at the termination of its effective life.

Financially Attractive

Describes opportunities or investments that are likely to provide a good return or prove to be profitable.