A Chart Used to Show the Results of a Pareto

question 8

Multiple Choice

A chart used to show the results of a Pareto analysis is a

• A) Range chart.
• B) Bar chart.
• C) Control chart.
• D) Fishbone diagram.

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Definitions:

Contribution Margin Ratio

The percentage of sales revenue that exceeds variable costs, representing how much revenue contributes towards covering fixed costs and generating profit.

Monthly Fixed Expense

Costs that do not fluctuate with the volume of production or sales, such as rent, salaries, and insurance, incurred on a monthly basis.

Target Profit

Target profit is the amount of net income a company aims to achieve for a specific period as part of its financial and operational goals.

Break-Even Sales

The amount of revenue from sales needed to cover all fixed and variable expenses, at which point a business neither profits nor loses money.