Rodeo,IncHas a Contribution Margin Ratio of 45

question 2

Multiple Choice

Rodeo,Inc.has a contribution margin ratio of 45%.This month,profit was $40,000 and fixed costs were $50,000.How much was Rodeo's sales revenue?

• A)$40,500
• B)$90,000
• C)$111,111
• D)$200,000

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Definitions:

Progressive Taxes

A tax system in which the rate of taxation increases as the taxable amount increases, thereby placing a higher financial burden on individuals or entities with higher incomes.

Regressive Taxes

Taxes that take a larger percentage of income from low-income earners than from high-income earners, inversely related to the taxpayer's ability to pay.

Flat Tax

A tax system with a constant marginal rate, usually applied to individual or corporate income.

Federal Reserve Board

The governing body of the Federal Reserve System, which is responsible for setting monetary policy in the United States.