If Sales Are $160,000, Variable Costs Are $100,000, and Fixed

question 64

Multiple Choice

If sales are $160,000, variable costs are $100,000, and fixed costs are $40,000, the contribution margin ratio is:

• A) 62.5%
• B) 12.5%
• C) 37.5%
• D) 25.0%

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Definitions:

Southern Agriculture

The agricultural practices and economy specific to the southern regions, traditionally focused on crops like cotton.

Civil War

An intense conflict between factions, regions, or political groups within the same country, often characterized by significant violence and lasting social and economic impact.

Subsistence Farming

An agricultural system in which farmers focus on growing enough food to feed themselves and their families, with little or none left for sale or trade.

Federal Government's Land Policies

Regulations and practices employed by a federal government to manage public lands, including their use, conservation, and sale.