A Company with Monthly Fixed Costs of $170,000 Expects to Earn

question 19

Multiple Choice

A company with monthly fixed costs of $170,000 expects to earn monthly operating income of $25,000 by selling 6,500 units per month.What is the company's expected unit contribution margin?

• A)$30 per unit
• B)$26 per unit
• C)$22 per unit
• D)The information given is insufficient to determine unit contribution margin.

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Definitions:

Environmental Hazards

Potentially dangerous conditions or substances in the environment that can cause harm to humans, animals, or the ecosystem, ranging from chemical pollutants to natural disasters.

EPA Administrator

The chief executive officer of the Environmental Protection Agency, responsible for enforcing the nation's environmental laws.

Manufacture

Manufacture involves the process of converting raw materials into finished goods through various techniques and processes, typically involving labor and machinery.

Distribution

The act of presenting a product or service for utilization or consumption by a consumer or business entity.