The Contribution Margin Per Unit During March Was

question 173

Multiple Choice

The contribution margin per unit during March was:

• A)$8 per unit
• B)$12 per unit
• C)$10 per unit
• D)$3 per unit

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Definitions:

Allowance Method

A method of accounting for bad debts that involves estimating and recording the amount of uncollectible accounts receivable.

Direct Write-Off Method

An accounting method where uncollectible accounts receivable are directly written off against income at the time they are deemed non-recoverable.

Straight-Line Depreciation

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Depreciation

The systematic allocation of the depreciable amount of an asset over its useful life, reflecting wear and tear, obsolescence, or aging.