If a Firm's Fixed Costs Were Increased by $12,000 and the Contribution

question 64

Multiple Choice

If a firm's fixed costs were increased by $12,000 and the contribution margin ratio remained at 40 percent, then sales must increase by $________ in order to cover the additional fixed expenses:

• A)$24,000
• B)$30,000
• C)$36,000
• D)$48,000

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Definitions:

Muscular Strength

The maximal force that a muscle or group of muscles can exert in a single effort.

Sensory Keenness

The heightened ability to perceive stimuli through the senses.

Cardiac Output

The volume of blood the heart pumps through the circulatory system in one minute, an important measure of heart function and efficiency.

Information-Processing Speed

The rate at which an individual can process and react to the information they receive.