The Contribution Margin Ratio Is 25% for Crowne Company and the Break-Even

question 149

Multiple Choice

The contribution margin ratio is 25% for Crowne Company and the break-even point in sales is $200,000. If Crowne Company's target operating profit is $60,000, sales would have to be:

• A) $260,000.
• B) $440,000.
• C) $280,000.
• D) $240,000.

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Definitions:

Performance Advantage

The superiority that an individual or organization holds over competitors in terms of operational efficiency, effectiveness, and overall performance.

Total Quality Management

A comprehensive and continuous effort by an organization to improve the quality of its products, services, and processes through ongoing feedback and development.

Continuous Improvement

Continuous Improvement is an ongoing effort to improve products, services, or processes through incremental and breakthrough improvements, often influenced by methodologies like Lean and Six Sigma.

Customer Needs

The wants and requirements that customers express to fulfill a certain function or solve a problem through the purchase or use of a product or service.