Jamie Quinn, a Sole Proprietor, Has the Following Projected Figures

question 39

Multiple Choice

Jamie Quinn, a sole proprietor, has the following projected figures for next year: $\begin{array} { l } \text { Selling price per unit}&\$150.00\\ \text { Contribution margin per unit}&\$45.00\\ \text {Total fixed costs }&\$630,000\\\end{array}$

What is the contribution margin ratio?

• A)0.300
• B)1.429
• C)0.429
• D)3.333

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Definitions:

Cost Of Capital

The return rate that a company must earn on its investment projects to maintain its market value and attract funds.

Investment Risks

The possibility of losing some or all the original investment, which can arise from various sources including market volatility, inflation, and default.

Free Cash Flow

The amount of cash generated by a company after accounting for capital expenditures, available for distribution among shareholders, debt repayment, or reinvestment.

Proxy-Imperfect

A substitute measure used in analysis or calculation that does not accurately represent the intended variable.