A Company's Contribution Margin Ratio Is 8

question 54

Multiple Choice

A company's contribution margin ratio is 8%. Fixed costs are $2,400 per month. How much sales revenue is needed to break even?

• A) $28,000
• B) $36,000
• C) $32,000
• D) $30,000

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Definitions:

Reaction Formation

A psychological defense mechanism where an individual acts in a manner opposite to their actual feelings.

Social Zone

A spatial concept in social psychology referring to the comfortable distance for interactions among acquaintances or in professional settings.

Coworkers

Coworkers are individuals who work together in the same organization or on the same team, often sharing tasks, goals, and workplace challenges.

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety or to cope with reality.