If the Contribution Margin Ratio Is 0

question 141

Multiple Choice

If the contribution margin ratio is 0.25, targeted operating income is $50,000, and targeted sales volume in dollars is $260,000, then total fixed costs are ________.

• A) $35,000
• B) $210,000
• C) $157,500
• D) $15,000

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Definitions:

Reseller Market

A market wherein goods or services are purchased for the purpose of resale rather than personal use.

Government Market

A market segment where the main customer is any government entity, purchasing products or services for public service.

Organizational Buyer

An organization that purchases goods or services for its own use or for further production, including companies, governments, and institutions, not individual consumers.

Janitorial Services

Services provided to maintain cleanliness and upkeep of buildings and facilities.