Sullens Inc, Which Produces and Sells a Single Product, Has

question 2

Multiple Choice

Sullens Inc, which produces and sells a single product, has provided its contribution format income statement for July.
-If the company sells 8,600 units, its total contribution margin should be closest to:

• A) $113,400
• B) $111,800
• C) $110,500
• D) $24,788

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.

Par

A value assigned the shares of capital stock and stated on the stock certificate.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in cash or additional shares.

Dividend Per Share

The sum of money paid by a company to its shareholders, divided by the total number of shares outstanding, usually expressed as a dollar amount per share.