Question 12 (1.25 points) Accents Associates sells only one product, with a curr

Question

Question 12(1.25 points)

Accents Associates sells only one product, with a current selling price of $70 per unit. Variable costs are 40% of this selling price, and fixed costs are $12,000 per month. Management has decided to reduce the selling price to $65 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price.

At the reduced selling price of $65 per unit, the contribution margin ratio is (rounded, if necessary):

Question 12 options:

a)

43.1%.

b)

56.9%.

c)

52.8%.

d)

Some other percentage.

a)

43.1%.

b)

56.9%.

c)

52.8%.

d)

Some other percentage.

Explanation / Answer

C

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.