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:

Current Account Deficit

A situation where a country's total imports of goods, services, and transfers exceed its total exports, indicating it is spending more on foreign trade than it is earning.

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much one currency is worth in terms of another.

Foreign Exchange Market

A global marketplace for trading national currencies against one another.

Economic Growth

Refers to the increase in the production of economic goods and services, compared from one period of time to another.