Find the "Contribution Profit Margin" Based on the Following Information

question 3

Multiple Choice

Find the "contribution profit margin" based on the following information: cash fixed costs = $60,000; variable costs = $70,000; and sales = $100,000.

• A) 70%
• B) 60%
• C) 30%
• D) 40%
• E) 100%

---

Definitions:

Significance Level

A threshold set by the researcher to determine the maximum probability of wrongly rejecting the null hypothesis, commonly denoted as alpha (α) and often set at 0.05 or 5%.

Linearly Related

A relationship between two variables in which the change in one variable is directly proportional to the change in another.

Years of Experience

A measurement of the amount of time an individual has spent in a particular role or industry.

Nominal Variable

A variable that represents categories with labels or names but which does not have an inherent order.