Executive Ambience Company Sells Desks at $480 Per Desk $\begin{array}{ll}\text { Direct materials } & \$ 195 \\\text { Direct labor } & 126 \\\text { Variable factory overhead } & 51\end{array}$

question 163

Multiple Choice

Executive Ambience Company sells desks at $480 per desk. The costs associated with each desk are as follows: $\begin{array}{ll}\text { Direct materials } & \$ 195 \\\text { Direct labor } & 126 \\\text { Variable factory overhead } & 51\end{array}$ Total fixed costs for the period are $456,840. The contribution- margin ratio is:

• A) 77.5%
• B) 40.6%
• C) 22.5%
• D) 29.0%

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Definitions:

Cashier Department

A division in a company or organization responsible for handling cash transactions, receipts, and disbursements.

Safety Deposit Boxes

Secure containers usually held within a bank vault, used to store valuable possessions, documents, or data that the owner wishes to protect.

Control Activity Over Cash

Practices and procedures implemented to manage and safeguard cash transactions and prevent fraud.

Payments To Creditors

It refers to the amounts of money a company owes to its suppliers or service providers and plans to pay back.