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due April 5th
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1.
A company has contribution margin per unit of $45 and a contribution margin ratio of 40%. What is the
unit selling price?
A)
$75.00
B)
$112.50
C)
$18.00
D)
Cannot be determined.
2.
Sales are $500,000 and variable costs are $350,000. What is the contribution margin ratio?
A)
43%
B)
30%
C)
70%
D)
Cannot be determined because amounts are not expressed per unit.
3.
Disney's variable costs are 30% of sales. The company is contemplating an advertising campaign that
will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net
income increase?
A)
$18,000
B)
$28,000
C)
$12,000
D)
$6,000
4.
Sarks Company has a contribution margin of $150,000 and a contribution margin ratio of 30%. How
much are total variable costs?
A)
$45,000
B)
$350,000
C)
$105,000
D)
$500,000
5.
Hardage Company has a contribution margin per unit of $15 and a contribution margin ratio of 60%.
How much is the selling price of each unit?
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 Spring '11
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