If the Contribution Margin Ratio Is 0

question 14

Multiple Choice

If the contribution margin ratio is 0.60, targeted operating income is $50,000, and fixed costs are $75,000, then sales volume in dollars is ________. (Round the final answer to the nearest dollar.)

• A) $312,500
• B) $208,333
• C) $125,000
• D) $83,333

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Definitions:

Collection

The process of gathering data or items together, often for the purpose of analysis or to make sense of a set of findings.

Probability

A quantitative measure that indicates the likelihood of a particular event occurring.

Event

In probability and statistics, an occurrence or a set of outcomes of a particular experiment or situation.

Chance

The occurrence of events in the absence of any cause or pattern, often described in terms of probability.