Laredo,Inc

question 8

Multiple Choice

Laredo,Inc.has a contribution margin ratio of 45%.This month,sales revenue was $200,000,and profit was $40,000.If sales revenue increases by $20,000,by how much will profit increase?

• A)$1,800
• B)$4,500
• C)$5,000
• D)$9,000

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Definitions:

Water-based Solution

A water-based solution is a mixture in which water serves as the solvent, dissolving another substance, known as the solute.

Strong Electrolyte

A substance that completely dissociates into ions in solution, conducting electricity efficiently.

Electrolyte

A material that, when dissolved in a polar solvent like water, yields a solution capable of conducting electricity.

Compound

A substance made up of two or more different elements that are chemically bonded together.