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:

Street Smarts

Practical knowledge and skills possessed by someone who is experienced in dealing with difficult or dangerous situations, especially in urban environments.

Analytical Intelligence

The ability to analyze, evaluate, judge, compare, and contrast in order to solve problems.

Grit

The quality of having strong determination and perseverance to achieve long-term goals despite obstacles and challenges.

Emotional Intelligence

The capability to recognize, understand, manage, and utilize one's own emotions and those of others in positive ways to relieve stress, communicate effectively, empathize with others, overcome challenges and defuse conflict.