Sales Are $60,000 and Variable Costs Are $45,000

question 94

Multiple Choice

Sales are $60,000 and variable costs are $45,000.How much is the contribution margin ratio?

• A)75%
• B)50%
• C)25%
• D)Cannot be determined without more information.

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Definitions:

Positioning

The strategy of defining a brand or product's unique value in the market and in the minds of consumers.

Franchising

A business model wherein a business owner (franchisor) grants to an individual or entity (franchisee) the rights to operate a business under the franchisor's brand and system in exchange for a franchise fee and ongoing royalties.

Foreign Market

This refers to the markets outside the domestic boundaries where a company can sell its products or services, often requiring adaptation to local needs and regulations.

Franchisor

An entity or individual that grants another party the right to conduct business under their trademark or trade name in exchange for a franchisee fee and a percentage of franchise operation sales.