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

question 34

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 percentage form?

• A) 25.5%
• B) 50.0%
• C) 20.3%
• D) 33.3%

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Definitions:

Prudently

Acting with or showing care and thought for the future, typically in the management of resources or decision-making processes.

Repair Costs

Expenses incurred to fix or restore damaged or worn-out goods or property to their original condition.

Legal Action

A process by which a court of law is engaged to pursue a legal remedy, often involving litigation.

Differing Standards

Variations in rules, regulations, or norms across different areas, organizations, or systems.