If Sales Total $2,000,000, Fixed Costs Total $800,000, and Variable

question 178

True/False

If sales total $2,000,000, fixed costs total $800,000, and variable costs are 60% of sales, the contribution margin ratio is 40%.

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Definitions:

Merit Raises

Salary increases awarded to employees based on their job performance, often evaluated through performance appraisals.

Merit Bonuses

Financial rewards given to employees based on their performance and achievements, typically as a way to incentivize high-quality work.

Performance Appraisal System

The formal mechanism through which employee performance is assessed, feedback is provided, and development goals are set.

Gain Sharing

A performance-based compensation strategy where employees receive financial rewards based on improvements in the company's productivity or profitability.