Carver Company Produces a Product Which Sells for $30

question 65

Multiple Choice

Carver Company produces a product which sells for $30. Variable manufacturing costs are $15 per unit. Fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. A selling commission of 10% of the selling price is paid on each unit sold. The contribution margin per unit is:

• A) $3
• B) $15
• C) $8
• D) $12

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Definitions:

Efferent Nerves

Nerve fibers that carry signals away from the brain and spinal cord to the muscles and glands, facilitating action and response.

Afferent

Referring to the transmission of signals towards a central point, particularly nerves that carry impulses towards the brain or spinal cord.

Pyramidal

Referring to a structure, cell, or organization shaped like a pyramid, often used in describing certain brain cells or hierarchical systems.

Olfactory

Pertains to the sense of smell.