If the Contribution Margin Ratio Is 45%,target Operating Income Is

question 99

Multiple Choice

If the contribution margin ratio is 45%,target operating income is $50,000,and the sales revenue needed to achieve the target operating income is $300,000,what are total fixed expenses?

• A)$22,500
• B)$85,000
• C)$185,000
• D)$135,000

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Definitions:

Society's Preference

The collective values and priorities of a community or population, often influencing policy and market trends.

Resources Available

Refers to the total means available for economic and operational development, such as raw materials, manpower, and capital.

Economic Perspective

Viewing issues through the lens of economics, focusing on how resources are allocated, used, and managed to meet needs and achieve objectives.

State Government

The government of a specified state within a country, responsible for local laws and policies distinct from the federal government.