The Best Estimate of the Total Contribution Margin When 5,300

question 18

Multiple Choice

The best estimate of the total contribution margin when 5,300 units are sold is:

• A)$51,940
• B)$469,050
• C)$109,710
• D)$398,560

---

Definitions:

Required Return

The least percentage of profit or gain expected by an investor for taking the risk to invest in a specific asset or project.

Annual Dividend

The annual sum of dividends disbursed by a corporation to its stockholders.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.