Figure 8-12

question 95

Multiple Choice

Figure 8-12. Assume the following information for a product line:
Refer to Figure 8-12.What is the contribution margin of the product line?

• A)$400,000
• B)$525,000
• C)$445,000
• D)$515,000

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Definitions:

Tax Rate

The percentage at which income or profits are taxed by the government.

Income Tax Liability

The amount of tax owed to the government for earnings made during a fiscal period.

Operating Income

The profit earned from a firm's core business operations, excluding deductions of interest and tax.

Tax Rate

The percentage at which an individual or corporation is taxed.