For Wickham Co

question 110

Multiple Choice

For Wickham Co., sales is $3,000,000, fixed expenses are $900,000, and the contribution margin ratio is 36%. What is required sales in dollars to earn a target net income of $600,000?

• A) $1,666,667
• B) $2,500,000
• C) $4,166,667
• D) $8,333,333

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Definitions:

Optimal Distribution

The allocation of resources in a manner that maximizes efficiency and effectiveness, often in terms of cost, access, or utility.

Earned Income Tax Credit

A refundable tax credit aimed at benefiting workers with low to moderate income, encouraging and rewarding work.

Farm Subsidy Programs

Financial assistance programs provided by the government to farmers to stabilize food prices, ensure a consistent food supply, and sustain the agricultural sector's economic viability.

Social Security

A government program that provides financial assistance to people with inadequate or no income, primarily the elderly, disabled, and survivors.