Sarah Smith,a Sole Proprietor,has the Following Projected Figures for Next

question 3

Multiple Choice

Sarah Smith,a sole proprietor,has the following projected figures for next year: $\begin{array}{lr}\text { Selling price per unit } & \$ 150.00 \\\text { Contribution margin per unit } & \$ 45.00 \\\text { Total fixed costs } & \$ 630,000\end{array}$ What is the contribution margin ratio?

• A)0.300
• B)0.429
• C)1.429
• D)3.333

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Definitions:

Canned Green Beans

A preserved food product consisting of green beans that are processed and sealed in an airtight container, which can be stored for long periods.

Complements

Products or services that complement each other, resulting in a rise in demand for one causing a corresponding increase in demand for the other.

Substitutes

Goods or services that can replace each other in use, whereby an increase in the price of one leads to an increase in demand for the other.

Quantity Of Zero

A condition where the quantity of a good or service supplied or demanded is zero, often due to a price set below or above the market equilibrium.