Sales Are $500,000 and Variable Costs Are $350,000

question 133

Multiple Choice

Sales are $500,000 and variable costs are $350,000. What is the contribution margin ratio?

• A) 43%
• B) 30%
• C) 70%
• D) Cannot be determined because amounts are not expressed per unit.

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Definitions:

Indexed Social Benefit

Social security or welfare benefits that are adjusted (indexed) over time to maintain their value in the face of inflation or other economic changes.

Federally-Run Program

A government program directly overseen and administered by a federal agency or department.

Tax Expenditure

describes government losses in tax revenue due to deductions, exemptions, and credits allowed to taxpayers, which can be seen as a form of government spending through the tax code.

Home Mortgage

A loan given by a bank or lender to help finance the purchase of a home, secured by the property itself.