Answer:
The board members of Company A, Inc. are considering purchasing a warehouse for the storage of inventory for the company. During the consideration of different warehouses from the realtor, the board votes to purchase the warehouse in Ohio as a centrally located warehouse to their Michigan headquarters. During the discussion, not many options were discussed regarding each property, and the board rushed the process. One of the board members stated that the process did not require much time because they relied on the information and reports from the realtor. It is later discovered that a board member, Lisa, owned 10% of the Ohio Warehouse that the company purchased. She has stated that the warehouse was 10% hers as a result of a property settlement years ago, and she did not see her small interest ownership as being something to the level that she was going to greatly benefit from the sale, so it was nothing she felt a concern about. Some of the shareholders feel this decision may not have been in the best interest for the company and are considering legal action against the board.
a. Explain what defense the board members have regarding their decision i
Explanation:
I don't know
Answer:
$29.50
Explanation:
The computation of the contribution margin per unit is shown below:
Contribution margin per unit = Selling price per unit - Variable cost per unit
where,
Selling price per unit is $50
And, the variable cost per unit = $24 - $3.5 = $20.5
Now put these values to the above formula
So, the value would equal to
= $50 - $20.5
= $29.50 per unit
Confused? What is the problem at hand?
