Armstrong Industries Has a Contribution Margin of $300,000 and a Contribution

question 40

Multiple Choice

Armstrong Industries has a contribution margin of $300,000 and a contribution margin ratio of 30%.How much are total variable costs?

• A)$90,000
• B)$700,000
• C)$210,000
• D)$1,000,000

---

Definitions:

Perceptual Mapping

Perceptual mapping is a diagrammatic technique used by marketers to visually display the perceptions of customers or potential customers to compare attributes of different products.

Private-label Brands

Brands owned by a retailer or supplier that are sold exclusively in their own stores or outlets.

Perceptual Map

A visual representation that depicts consumers' perceptions of competing products or brands relative to one another along various dimensions.

Brand Insistence

The condition in which consumers persist in preferring and choosing one brand over its competitors, regardless of changes or alternatives offered.