How Much Does Each Additional Sales Dollar Contribute Toward Profit

question 77

Multiple Choice

How much does each additional sales dollar contribute toward profit for a firm with $5 million break-even level of revenues and $1.5 million in fixed costs including depreciation? (use the values in dollar)

• A)$0.30
• B)$0.33
• C)$0.50
• D)$0.67

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Definitions:

Silicate Mineral

Refers to minerals composed of silicate groups, which are compounds of silicon and oxygen, often forming the majority of the Earth's crust.

Wavy Lines

Irregular, zigzagging patterns often found in nature, art, or graphical representations, symbolizing movement or variability.

No Cleavage

A term used in mineralogy to describe minerals that do not exhibit a tendency to break along flat, smooth surfaces.

Abundant Elements

The most common elements found in the Earth's crust, atmosphere, or oceans.