Markham Company Has a Contribution Margin Ratio of 25

question 140

Multiple Choice

Markham Company has a contribution margin ratio of 25%.The company is considering a proposal that will increase sales by $150,000.What increase in profit can be expected assuming total fixed costs increase by $25,000? (Do not round your intermediate calculations. )

• A) $6,250
• B) $31,250
• C) $37,500
• D) $12,500

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Definitions:

Sperm

Male gametes responsible for fertilizing female gametes during sexual reproduction.

Oocyte

Immature egg.

Post Fertilization

The stage in the reproductive process that occurs after the fusion of gametes, involving embryo development and seed formation in plants.