A Company Has Total Fixed Costs of $180,000 and a Contribution

question 49

Multiple Choice

A company has total fixed costs of $180,000 and a contribution margin ratio of 30%.How much sales are necessary to break even?

• A)$540,000
• B)$600,000
• C)$54,000
• D)$126,000

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Definitions:

Orphan

A child who has lost both parents through death or, in some definitions, a child who has lost one parent.

Account Penetration

The process of deepening relationships with existing customers by selling more products or services.

Transactional Relationship

A business relationship focused primarily on the exchange of goods or services for payment, with little personal connection.

Distinct Component

a unique and identifiable part of a larger system or product, which serves a specific function and is often necessary for the overall operation or effectiveness.