A Company Has Total Fixed Costs of $240000 and a Contribution

question 130

Multiple Choice

A company has total fixed costs of $240000 and a contribution margin ratio of 20%. The total sales necessary to break even are

• A) $960000.
• B) $1200000.
• C) $300000.
• D) $288000.

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Definitions:

Business Ethics

The study and examination of moral and ethical problems that may arise in a business environment.

Work Environment

The setting, conditions, and culture in which employees operate, significantly influencing their productivity and satisfaction.

Creativity

The ability to produce original and unusual ideas, or to make something new or imaginative.

Doing Business

Engaging in commercial, industrial, or professional activities with the goal of earning profits.