During Its Most Recent Fiscal Year,Dover,Inc

question 44

Multiple Choice

During its most recent fiscal year,Dover,Inc.had total sales of $3,200,000.Contribution margin amounted to $1,500,000 and pretax income was $400,000.What amount should have been reported as fixed costs in the company's contribution margin income statement for the year in question?

• A)$1,900,000.
• B)$2,800,000.
• C)$1,300,000.
• D)$1,100,000.
• E)$1,700,000.

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Definitions:

Cash Cows

Products or business units that generate significantly more money than they consume, often providing the bulk of a company's profit.

Stars

High-performing items or individuals within a portfolio, business, or organization, typically showing significant growth potential and market leadership.

Retrenchment

A strategy or action taken by businesses to reduce costs or spending in response to economic challenges, often involving cuts in workforce, operations, or investment.

Strong Cash Flow

A financial situation where a company has a steady and robust inflow of cash, indicating good liquidity and operational health.