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

Understand the categorization of cash receipts and payments into operating, investing, and financing activities.

Recognize the criteria for an item to be classified as a cash equivalent.

Familiarize with the purpose and importance of preparing a statement of cash flows.

Learn how transactions impact the cash and cash equivalents' ending balance.

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Definitions:

Absorptive State

A metabolic phase occurring several hours after eating, where the body digests and absorbs nutrients from the food, leading to an increase in blood glucose and subsequently, energy storage in cells.

Glycogenolysis

The process of breaking down glycogen into glucose, providing energy for the body.

Gluconeogenesis

A metabolic pathway that results in the generation of glucose from certain non-carbohydrate carbon substrates such as lactate, glycerol, and glucogenic amino acids.

Total Energy Expenditure

The total amount of calories burned by the body in a day, encompassing activities, digestion, and basal metabolic processes.