If a Company Had a Contribution Margin of $750,000 and a Contribution

question 80

Multiple Choice

If a company had a contribution margin of $750,000 and a contribution margin ratio of 40%, total variable costs must have been

• A)$1,125,000.
• B)$450,000.
• C)$1,875,000.
• D)$300,000.

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Definitions:

Self-Interest

The motivation driving individuals to pursue their own benefits or advantages, often considered a fundamental economic assumption.

Guiding Function Of Prices

The role of prices in signaling to both buyers and sellers about the relative scarcity or abundance of goods and services, thus guiding their economic decisions.

System Accommodate Change

A system's ability to adjust or adapt to changes in its environment or operations, ensuring continued functionality or efficiency.

New Production Technique

Innovations or methodologies that improve the efficiency or quality of product manufacturing or service delivery.