If the Contribution Margin Ratio Is 60%, Target Operating Income

question 2

Multiple Choice

If the contribution margin ratio is 60%, target operating income is $50,000, and the sales revenue needed to achieve the target operating income is $800,000, what are total fixed expenses?

• A)$30,000
• B)$430,000
• C)$530,000
• D)$480,000

---

Definitions:

Striations

A series of ridges, furrows or linear marks, frequently found in muscle tissue, rocks, and other materials, often indicating a specific characteristic or formation process.

Muscles Contract

The process where muscle fibers shorten in length to produce movement or exert force.

Body Temperature

The measure of the body's warmth or heat, indicative of metabolic processes and physiological condition, often measured in Fahrenheit or Celsius.

Events

Occurrences or happenings, especially significant ones, that are planned or accidental.