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:

Time Periods

Distinct intervals of time within which certain activities or events occur or are completed.

Simple Interest

Simple interest is a method of calculating the interest charge on a loan based on the original principal balance without compounding.

Rate of Return

The financial improvement or decline in an investment across a particular period, indicated as a percentage of the investment’s entry cost.

Interest

The fee associated with the right to borrow funds, usually indicated as a yearly percentage rate.