You Own a Classic Automobile That Is Currently Valued at $150,000.If

question 22

Multiple Choice

You own a classic automobile that is currently valued at $150,000.If the value increases by 6.5 percent annually,how much will the automobile be worth ten years from now?

• A)$244,035.00
• B)$251,008.17
• C)$270,013.38
• D)$281,570.62
• E)$291,480.18

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Definitions:

Contribution Margin Ratio

The percentage of revenue remaining after variable costs have been subtracted, indicating how much revenue is available to cover fixed costs and generate profit.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much contributes towards covering fixed costs and generating profit.

Variable Costs

Costs that change in proportion to the level of activity or volume of production in a business.

Pretax Income

The amount of income that a company earns before any taxes are deducted.