If the Contribution?margin Ratio Is 0

question 81

Multiple Choice

If the contribution?margin ratio is 0.30, targeted net income is $76,800, and targeted sales volume in dollars is $480,000, then total fixed costs are _____.

• A)$23,000
• B)$44,160
• C)$67,200
• D)$144,000

---

Definitions:

Minimum Required Rate

The lowest rate of return or yield that an investor expects or requires from an investment.

Internal Rate of Return

The discount rate at which the net present value of all cash flows (both positive and negative) from a project or investment equals zero.

Rate of Return

A measure of the profitability and efficiency of an investment, expressed as a percentage of the original investment.

Initial Investment

The funds allocated to start a business or a project, representing the beginning financial input.