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:

Illness

A condition of poor health perceived or felt by an individual, often characterized by disease or discomfort.

Lifestyle Factors

Elements and choices of daily life that can affect one's health and well-being, including diet, physical activity, alcohol consumption, and smoking.

Chief

A leader or head of a group, organization, or tribe, often holding authority and responsibility for decision-making and governance.

Black Death

A devastating global epidemic of bubonic plague that struck Europe and Asia in the mid-1300s.