Paxton Corp Has Provided the Following Data Concerning Its Operations

question 116

Multiple Choice

Paxton Corp has provided the following data concerning its operations last month:
$\begin{array} { | l | r | } \hline \text { Sales } & \$ 400,000 \\\hline \text { Variable expenses } & \$ 250,000 \\\hline \text { Fixed expenses } & \$ 100,000 \\\hline\end{array}$ Paxton Corp is a retailing organization.


-What is the contribution margin ratio?

• A) 12.5%.
• B) 33.0%.
• C) 25.0%.
• D) 37.5%.

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Definitions:

TPS

Transaction Processing Systems are computerized systems that perform and record daily routine transactions necessary to the operation of a business, such as sales order entry, hotel reservations, payroll, employee record keeping, and shipping.

Data

Data refers to qualitative or quantitative attributes of a variable or set of variables.

Knowledge

Data and/or information that have been organized and processed to convey understanding, experience, accumulated learning, and expertise as they apply to a current problem or activity.

Wisdom

The capacity to apply knowledge, experience, understanding, and insight in a judicious and practical way to solve problems or make decisions.