The Cumberland Company Provides the Following Information What Is the Contribution Margin Ratio for Cumberland?
A)0

question 105

Multiple Choice

The Cumberland Company provides the following information: $\begin{array} { l } \text {Sales (250,000 units) }&\$625,000\\ \text {Manufacturing costs: }&\\ \text {Variable }&212,500\\ \text { Fixed}&37,500\\ \text {Selling and administrative costs: }&\\ \text {Variable }&100,000\\ \text { Fixed}&25,000\\\end{array}$
What is the contribution margin ratio for Cumberland?

• A)0.16
• B)0.76
• C)0.50
• D)0.34

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Definitions:

Non-competition Clause

A provision in a contract that prohibits a party from entering into competition with another party for a certain period of time and within a specific geographical area.

Liquidated Damages

A predetermined amount of money that must be paid as compensation for failure to perform under a contract.

Penalty Unenforceability

The legal concept that a penalty clause within a contract may not be enforceable if it is deemed excessively punitive rather than a genuine pre-estimate of loss.

Liquidated Damages

A predetermined amount of money that must be paid as compensation for failure to perform certain obligations of a contract.