A Company Has Total Fixed Costs of $200,000 and a Contribution

question 148

Multiple Choice

A company has total fixed costs of $200,000 and a contribution margin ratio of 20%.The total sales necessary to break even are

• A)$800,000.
• B)$1,000,000.
• C)$250,000.
• D)$240,000.

---

Definitions:

HR Managers

Professionals tasked with developing staffing strategies, managing employee relations, and ensuring compliance with employment and labor laws.

Advisory Role

A function wherein an individual or group provides expert advice and guidance to others without having direct decision-making power.

Outsourcing

The practice of hiring third-party vendors to perform tasks, handle operations or provide services that are either difficult to manage or outside the core business competency.

Morale

The level of confidence, enthusiasm, and discipline of a person or group at a particular time, especially in a workplace context.