Assume that you are trying to decide between watching a movie at the local theatre or renting a movie at your apartment and watching it on your own television. After watching the movie at your chosen venue, you plan to order chinese food to be delivered to your apartment. Regarding the decision at hand, the cost of renting a movie at your apartment is a:

Multiple Choice

• future cost that does not differ between the alternatives.

• joint cost.

• differential cost.

• sunk cost.

Assume a company makes only three products, A, B, and C:

	Product A					Product B					Product C
Selling price per unit		$	70				$	65				$	45
Variable cost per unit		$	35				$	25				$	20
Machine-hours per unit			2.75					3					1.5

The company does not have enough machine-hours available to satisfy demand for all of its products. Product As contribution margin per unit of the constraining resource is closest to:

Multiple Choice

• $36.00.

• $12.73.

• $35.00.

• $96.25.