Gibbs Company Has a Contribution Margin of $150,000 and a Contribution

question 89

Multiple Choice

Gibbs Company has a contribution margin of $150,000 and a contribution margin ratio of 30%. How much are total variable costs?

• A) $45,000
• B) $350,000
• C) $105,000
• D) $500,000

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Definitions:

Antitrust Amendments Act

Refers to legislative changes aimed at strengthening laws that regulate business practices to ensure fair competition and prevent monopolies.

Price Discrimination

The practice of selling the same product or service at different prices to different buyers, without a justified cost basis for the price variation.

Bankruptcy

Bankruptcy is a legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.

Statutory Defense

A defense based on specific statutes or laws that can provide immunity or exoneration to the defendant.