Dolce Company Is Planning to Sell 400,000 Hammers for $1

question 95

Multiple Choice

Dolce Company is planning to sell 400,000 hammers for $1.50 per unit. The contribution margin ratio is 20%. If Dolce will break even at this level of sales, what are the fixed costs?

• A) $120,000
• B) $280,000
• C) $400,000
• D) $480,000

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Definitions:

Cost/Time Trade-Off

A project management concept that emphasizes the relationship between the cost of completing a project and the time it takes to complete it, indicating that decreasing the completion time often results in increased costs.

Critical Path

The chain of crucial operations in a project that must be executed on schedule for the project to be completed by the targeted due date.

Network Diagram

A visual representation of a project's tasks and the relationships between them, showing the sequence of tasks and dependencies.

Gantt Chart

A visual project management tool that outlines a project schedule, showing the start and finish dates of various elements or tasks within the project.