If You Sell $2,500 of Product, Pay COGS of $800

question 50

Multiple Choice

If you sell $2,500 of product, pay COGS of $800 and other variable costs of $450, what is your contribution margin in dollars?

• A) $1,700
• B) $2,050
• C) $1,250
• D) $2,450

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Definitions:

Root Crop

Edible plants that grow underground such as potatoes, carrots, and beets, often rich in carbohydrates and nutrients.

Corn

A cereal plant that yields large kernels on a cob, widely grown for food and livestock feed.

Natural Selection

The evolutionary process where organisms better adapted to their environment tend to survive and reproduce more successfully than less well-adapted organisms.

Predation

The biological interaction where one organism, the predator, kills and consumes another organism, its prey, as a food source.