Montoya Manufacturing Has Fixed Costs of $2,500,000 and Variable Costs

question 54

Multiple Choice

Montoya Manufacturing has fixed costs of $2,500,000 and variable costs are 40% of sales.What are the required sales if Montoya desires net income of $250,000?

• A)$4,583,333
• B)$4,166,667
• C)$6,875,000
• D)$6,250,000

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Definitions:

Construct Validity

The degree to which a test measures what it claims to be measuring, specifically the ability of a measurement tool to actually measure the theoretical construct it intends to measure.

Criterion-related Validity

The extent to which a test's scores correlate with another measure or outcome that it is theoretically expected to predict.

Content Validity

The degree to which a test or measure reflects the entire range of material it is supposed to be testing.

Content Validity

The extent to which a test or questionnaire accurately covers or represents the specific content it aims to measure.