If Sales Are $80,000, Variable Costs Are $50,000, and Fixed

question 40

Multiple Choice

If sales are $80,000, variable costs are $50,000, and fixed costs are $20,000, the contribution margin ratio is:

• A) 37.5%
• B) 12.5%
• C) 62.5%
• D) 25.0%

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Definitions:

Creditor Beneficiary

A third party to whom one or both contracting parties owe a continuing debt of obligation arising from a contract.

Direct Right

This term is not commonly defined in legal or regulatory contexts; without further context, it might not refer to a widely recognized concept. NO.

Express Warranties

Express Warranties are explicit guarantees made by a seller about the quality, condition, or performance of a product, which become part of the sales contract.

Assignment

The transfer of rights or property from one party to another.