The Records of Gemini Company Show a Contribution Margin Ratio

question 26

Multiple Choice

The records of Gemini Company show a contribution margin ratio of 40%.The company desires to earn a profit of $35,000 and has fixed costs of $70,000.What sales revenue would have to be generated in order to earn the desired profit?

• A) $87,500
• B) $262,500
• C) $175,000
• D) $42,000

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