Challis Company Had Sales of $450,000 and a Profit of $54,000

question 47

Multiple Choice

Challis Company had sales of $450,000 and a profit of $54,000 during the period. Assume the fixed costs for the period were $184,500. The contribution margin ratio for the period was:

• A) 12%
• B) 47%
• C) 53%
• D) 88%

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Definitions:

Low-value

Refers to products, services, or attributes perceived as offering minimal benefit or worth in comparison to their cost or significance.

Combinations

The act of combining or joining two or more elements together to form a whole.

English Auction

A bidding process where participants bid openly against one another, and the item is sold to the highest bidder.

Estimates Values

An approximation of the worth of goods, services, or financial instruments calculated through analysis or assessment techniques.