Question 4 XYZ Company manufactures and sells plates. Present sales output is 4,000,000 per year at a selling price of $.70 per unit. Fixed costs are $800,000 per year. Variable costs are $.35 per unit. What is the Contribution Margin for a year? $1,400,000 $800,0000 1,600,000

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
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Question 4
XYZ Company manufactures and sells plates. Present sales output is 4,000,000 units
per year at a selling price of $.70 per unit. Fixed costs are $800,000 per year.
Variable costs are $.35 per unit.
What is the Contribution Margin for a year?
$1,400,000
$800,0000
1,600,000
$400,000
Transcribed Image Text:Question 4 XYZ Company manufactures and sells plates. Present sales output is 4,000,000 units per year at a selling price of $.70 per unit. Fixed costs are $800,000 per year. Variable costs are $.35 per unit. What is the Contribution Margin for a year? $1,400,000 $800,0000 1,600,000 $400,000
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