Parker Industries is a small company with a big name! Parker Industries is actually a one-person company that imports strands of LED lights from China and sells them through its website. Parker's only overhead is a storage unit for inventory that costs $125 a month and a $25 monthly fee for web site hosting. Currently, Parker imports the lights for $.99 each (including inbound shipping) and sells them for $4.49. Parker also pays shipping expenses of $.50 per light strand. What is Parker's contribution margin? $3.00 $3.50 $3.99 $4.49
Parker Industries is a small company with a big name! Parker Industries is actually a one-person company that imports strands of LED lights from China and sells them through its website. Parker's only overhead is a storage unit for inventory that costs $125 a month and a $25 monthly fee for web site hosting. Currently, Parker imports the lights for $.99 each (including inbound shipping) and sells them for $4.49. Parker also pays shipping expenses of $.50 per light strand. What is Parker's contribution margin? $3.00 $3.50 $3.99 $4.49
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Parker Industries is a small company with a big name! Parker Industries is actually a one-person company that imports strands of LED lights from China and sells them through its
website. Parker's only overhead is a storage unit for inventory that costs $125 a month and a $25 monthly fee for web site hosting. Currently, Parker imports the lights for $.99 each
(including inbound shipping) and sells them for $4.49. Parker also pays shipping expenses of $.50 per light strand. What is Parker's contribution margin?
$3.00
$3.50
$3.99
$4.49](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F35e0e75f-e8c2-4dab-b2c9-b1b559720d41%2F71364cf8-1259-49a0-989d-c2fd2d6b1d7c%2Fxbug9ir_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Parker Industries is a small company with a big name! Parker Industries is actually a one-person company that imports strands of LED lights from China and sells them through its
website. Parker's only overhead is a storage unit for inventory that costs $125 a month and a $25 monthly fee for web site hosting. Currently, Parker imports the lights for $.99 each
(including inbound shipping) and sells them for $4.49. Parker also pays shipping expenses of $.50 per light strand. What is Parker's contribution margin?
$3.00
$3.50
$3.99
$4.49
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