If Sales Are $820,000, Variable Costs Are 55% of Sales

question 22

Multiple Choice

If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, what is the contribution margin ratio?

• A) 45%
• B) 55%
• C) 62%
• D) 32%

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Definitions:

Dred Scott

An enslaved African American man who sued for his freedom in a landmark case, Dred Scott v. Sandford (1857), leading to a controversial Supreme Court decision that increased tensions leading up to the Civil War.

U.S. Supreme Court

The highest court in the United States, responsible for interpreting the Constitution and reviewing cases that involve federal law or constitutional issues.

Constitutional Unionist Candidate

A candidate representing the Constitutional Union Party, a political party in the United States formed in 1860 that sought to avoid secession by appealing to voters who wanted to keep the Union together without addressing the issue of slavery.

John Bell

A 19th-century American politician who was the Constitutional Union Party candidate for the 1860 presidential election.