Janet Company Produces a Game That Sells for $17 Per

question 112

Multiple Choice

Janet Company produces a game that sells for $17 per game. Variable expenses are $9 per game and fixed expenses total $172,000 annually.
-The contribution margin ratio is closest to:

• A) 47.1%
• B) 2.1%
• C) 1.9%
• D) 52.9%

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Definitions:

Marginal Cost

The cost added by producing one additional unit of a product or service, a key factor in economic decision-making.

Demand Schedule

is a table that lists the quantity of a good that consumers are willing to buy at different price levels, showing the relationship between price and quantity demanded.

Marginal Cost

The cost of producing one additional unit of a product, reflecting changes in variable cost as output is adjusted.

Average Cost

The total cost of production divided by the number of goods produced, providing a cost per unit of output.