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With fixed costs of $50,000/month, Blair reported a monthly profit of $5,000 at a volume of 5,000 units. The unit contribution margin was $12.00 $11.00 $10.00 $9.00

With fixed costs of $50,000/month, Blair reported a monthly profit of $5,000 at a volume of 5,000 units. The unit contribution margin was $12.00 $11.00 $10.00 $9.00

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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**Problem Statement:** With fixed costs of $50,000/month, Blair reported a monthly profit of $5,000 at a volume of 5,000 units. The unit contribution margin was: - ○ $12.00 - ○ $11.00 - ○ $10.00 - ○ $9.00 **Explanation:** This question presents a scenario where a company named Blair has fixed costs and a reported profit, with the number of units sold provided. The task is to determine the unit contribution margin from the given options. A contribution margin is the selling price per unit, minus the variable cost per unit. In this context, you need to calculate which option represents the contribution margin that, after covering fixed costs, results in the stated profit with the given sales volume.
Transcribed Image Text:**Problem Statement:** With fixed costs of $50,000/month, Blair reported a monthly profit of $5,000 at a volume of 5,000 units. The unit contribution margin was: - ○ $12.00 - ○ $11.00 - ○ $10.00 - ○ $9.00 **Explanation:** This question presents a scenario where a company named Blair has fixed costs and a reported profit, with the number of units sold provided. The task is to determine the unit contribution margin from the given options. A contribution margin is the selling price per unit, minus the variable cost per unit. In this context, you need to calculate which option represents the contribution margin that, after covering fixed costs, results in the stated profit with the given sales volume.
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