A Company Has Total Fixed Costs of $120,000 and a Contribution

question 178

Multiple Choice

A company has total fixed costs of $120,000 and a contribution margin ratio of 20%. The total sales necessary to break even are

• A) $480,000.
• B) $600,000.
• C) $150,000.
• D) $144,000.

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Definitions:

Contraceptive Method

Any of various techniques or devices used to prevent pregnancy as a result of sexual intercourse.

Failure Rate

A measure of the frequency at which an engineered system or component fails, expressed in a particular unit of measure.

Withdrawal

A psychological and physical reaction that occurs when someone stops using an addictive substance or behavior.

Sexually Transmitted Diseases

Infections that are primarily passed through sexual contact, including via vaginal, anal, and oral intercourse.