Chisholm Co

question 70

Multiple Choice

Chisholm Co. has a contribution margin ratio of 40% and a breakeven point of $200,000 in sales. If the firm reports net income of $50,000 after taxes of 50%, what were total sales for the year?

• A) $450,000
• B) $466,667
• C) $500,000
• D) $700,000

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Definitions:

Three-Eighths Interest

Refers to a specific interest rate of 3/8, or 0.375, often used in financial agreements or calculations.

Ski Chalet

A type of mountain lodge or cabin, often located in ski resorts, designed primarily for accommodation and leisure activities related to skiing.

Billing

The process of sending or presenting invoices to customers for goods or services provided.

Invoice

A document issued by a seller to a buyer, detailing products or services sold, including quantities, prices, and terms of payment.