Bryce Co Sales Are $914,000, Variable Costs Are $498,130, and Operating

question 38

Multiple Choice

Bryce Co. sales are $914,000, variable costs are $498,130, and operating income is $196,000. What is the contribution margin ratio?

• A) 52.2%
• B) 28.4%
• C) 54.5%
• D) 45.5%

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Definitions:

Buffer

A neutral or positive statement designed to allow the writer to delay, or buffer, the negative message.

Goodwill

The value of a business beyond its tangible assets, including its reputation and patronage. Also, a favorable condition and overall atmosphere of trust that can be fostered between parties conducting business.

Negative Message

Communication that conveys a refusal, rejection, or other unfavorable information, often requiring careful wording to maintain goodwill.

Apologies

Expressions of regret for past actions or statements, often used to mend relationships or acknowledge mistakes.