Watson Company Has Monthly Fixed Costs of $83,000 and a 40

question 110

Multiple Choice

Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio.If the company has set a target monthly income of $15,000,what dollar amount of sales must be made to produce the target income?

• A)$245,000
• B)$207,500
• C)$37,300
• D)$170,000
• E)$39,200

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Definitions:

Strategic Intent

A focused approach defining what an organization intends to achieve in the long term, guiding decisions and resource allocation.

Operational Plan

A plan that identifies short-term activities to implement strategic plans.

Functional Plan

A detailed, department-specific plan that outlines the objectives, strategies, and actions for achieving functional goals.

Objective Advantage

A definite, measurable benefit that one option or situation has over others, based on factual evidence.