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Rocky Mountain Bottling Company produces a soft drink that is sold for a dollar. At production and sales of 1,000,000 units, the company pays $600,000 in production costs, half of which are fixed costs. At that volume, general, selling, and administrative costs amount to $250,000, of which $50,000 are fixed costs. What is the amount of contribution margin per unit? (Do not round intermediate calculations.) Multiple Choice $0.10 $0.50 $035 None of these is correct. O O

Rocky Mountain Bottling Company produces a soft drink that is sold for a dollar. At production and sales of 1,000,000 units, the company pays $600,000 in production costs, half of which are fixed costs. At that volume, general, selling, and administrative costs amount to $250,000, of which $50,000 are fixed costs. What is the amount of contribution margin per unit? (Do not round intermediate calculations.) Multiple Choice $0.10 $0.50 $035 None of these is correct. O O

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rocky Mountain Bottling Company produces a soft drink that is sold for a dollar. At production and sales of 1,000,000 units, the company pays $600,000 in production costs, half of which are fixed costs. At that volume, general, selling, and administrative costs amount to $250,000, of which $50,000 are fixed costs. What is the amount of contribution margin per unit? (Do not round intermediate calculations.) Multiple Choice $0.10 $0.50 $0.35 None of these is correct.
Transcribed Image Text:Rocky Mountain Bottling Company produces a soft drink that is sold for a dollar. At production and sales of 1,000,000 units, the company pays $600,000 in production costs, half of which are fixed costs. At that volume, general, selling, and administrative costs amount to $250,000, of which $50,000 are fixed costs. What is the amount of contribution margin per unit? (Do not round intermediate calculations.) Multiple Choice $0.10 $0.50 $0.35 None of these is correct.
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