Fern,IncHas Fixed Costs of $400,000 and a Contribution Margin Ratio

question 99

Multiple Choice

Fern,Inc.has fixed costs of $400,000 and a contribution margin ratio of 30%.How much sales revenue must be earned for a profit of $80,000?

• A)$144,000
• B)$336,000
• C)$1,600,000
• D)$1,920,000

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Definitions:

Third-degree Burn

A severe burn characterized by destruction of the skin through the depth of the dermis and possibly into underlying tissues, often leading to significant scarring and requiring medical intervention.

Eschar

A dry, dark scab or falling away of dead skin, typically resulting from a burn or by the action of certain skin diseases.

Partial-thickness Burn

A type of burn that affects the first and second layers of skin, causing pain, swelling, and blistering, but not as severe as a full-thickness burn.

Dermis

The thick layer of living tissue below the epidermis that forms the true skin, containing sweat glands, hair follicles, and other structures.