Dexter Corp

question 57

Multiple Choice

Dexter Corp.has fixed costs of $500,000 and a contribution margin ratio of 25%.Currently,margin of safety is $1,000,000.What are Dexter's current sales?

• A)$1,000,000
• B)$2,000,000
• C)$3,000,000
• D)$4,000,000

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Definitions:

Consumption of Services

The process of using services provided by businesses or individuals, which can include anything from healthcare to recreational activities.

Contracts

Legally binding agreements between two or more parties that outline the terms and conditions of a transaction or arrangement.

Quality Standards

Established criteria or benchmarks that describe the characteristics of a product, service, or process to ensure it meets customer and regulatory requirements.

Inventories Classified

The categorization of stock or inventory based on various criteria, such as type, usage rate, or value, to ensure efficient management and control.