[The Following Information Applies to the Questions Displayed Below

question 119

Multiple Choice

[The following information applies to the questions displayed below.]
Mitchell Corporation manufactures a single product.The selling price is $85 per unit,and variable costs amount to $68 per unit.The fixed costs are $16,500 per month.
-What is the contribution margin ratio of Mitchell 's product?

• A)65%
• B)80%
• C)72%
• D)20%

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Definitions:

Higher Price

A situation where the cost of a good or service is increased beyond its standard or previous rate.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial gain exceeding opportunity costs.

Marginal Revenue

The extra revenue received from the sale of an additional unit of a product or service.

Competitive Price-searcher

A market participant who actively seeks out the best price for goods or services among various competitors.