Armstrong Industries Has a Contribution Margin of $240000 and a Contribution

question 27

Multiple Choice

Armstrong Industries has a contribution margin of $240000 and a contribution margin ratio of 30%. How much are total variable costs?

• A) $72000
• B) $560000
• C) $168000
• D) $800000

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Definitions:

Mass Manufacturing

The production of large quantities of standardized products, often utilizing assembly line technology and methodologies.

Part-Time Employees

Workers who are employed for fewer hours than considered full-time by their employer, often without receiving the full benefits given to full-time employees.

Standardized Wages

A system in which pay rates are set at a consistent amount for similar jobs within an industry or organization, aiming to ensure fairness.

Individuals

Single human beings as distinguished from a group, class, or family, often referred to in contexts emphasizing personal rights and responsibilities.