Answer:
sunk cost
Explanation:
Sunk cost is cost that has already been incurred and it cannot be recovered. When making future decisions, sunk cost should not be considered.
The money i paid for the ticket is the sunk cost. I should not consider this cost when making the decision of whether to for the concert or not to
Answer:
$218,400
Explanation:
The computation of contribution margin is here below:-
Units Cost per unit Total
Sales 6,000 $88 $528,000
Less:
Variable production cost 6,000 $40.8 $244,800
Variable selling and
administrative costs 6,000 $10.8 $64,800
Contribution margin $218,400
Therefore the we multiplied the sale unit with cost per unit, in the similar way we multiplied the Variable production cost unit with cost per unit and Variable selling and administrative costs with cost per unit to reach the contribution margin.
