Heath Ltd Owns and Operates a Textile Manufacturing Plant

Multiple Choice

Heath Ltd owns and operates a textile manufacturing plant. Garments are sold for $40 each. The fixed plant and equipment costs are $51 600 per annum. Producing each garment incurs $15 of labour costs and $7.80 of material costs. Heath Ltd's contribution margin per garment is:

A) $40.
B) $32.20.
C) $25.
D) $17.20.