Question 1

The cost of producing one additional unit is called a ______________ cost.

A. fixed

B. sunk

C. step

D. marginal

Question 2

Which of the following is an example of a type of cost that isirrelevantin making a decision between two alternatives?

A. sunk cost

B. marginal cost

C. differential cost

D. controllable cost

Question 3

stion 3

Beverly Beach sells luxury beach towels and has two products: the standard towel and the premium. towel. Currently, Beverly sells 4 standard towels for every 1 premium towel. The information below pertains to the sales price and variable cost for each product. Standard Premium Sales Price $40 $7'5 Variable Cost per Unit $30 $40 Contribution Margin per Unit $10 $35 Based on the above, what is the weighted-average contribution margin per unit? 0 $45 O $30 O $22.5 O $15