If the Contribution Margin Ratio Is 0

question 87

Multiple Choice

If the contribution margin ratio is 0.60, targeted operating income is $95,000, and targeted sales volume in dollars is $530,000, then the degree of operating leverage is ________.

• A) 0.30 times
• B) 0.67 times
• C) 3.35 times
• D) 2.23 times

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Definitions:

Stroma

The supportive tissue or matrix of an organ, as in the stroma of the ovary, or the dense fluid within the chloroplast where the Calvin cycle occurs in photosynthesis.

Thylakoid Compartment

A membranous structure within chloroplasts of plant cells and cyanobacteria, containing chlorophyll and other pigments for photosynthesis.

ATP Synthase

An enzyme that plays a key role in the process of cellular respiration, synthesizing ATP from ADP and inorganic phosphate during the process of oxidative phosphorylation.

Thylakoid Membrane

A membrane-bound compartment inside chloroplasts and cyanobacteria, involved in the light-dependent reactions of photosynthesis.