Dorian Company Produces and Sells a Single Product

question 81

Multiple Choice

Dorian Company produces and sells a single product. The product sells for $60 per unit and has a contribution margin ratio of 40%. The company's monthly fixed expenses are $28,800.


-If Dorian Company desires a monthly operating income equal to 10% of sales,what will its monthly sales have to be?

• A) $90,000.
• B) $45,600.
• C) $120,000.
• D) $96,000.

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Definitions:

Repetitive Manner

Performing actions or behaviors over and over again in a consistent and unvarying way.

Self-Stimulatory Behaviors

Repetitive actions or movements, often seen in individuals with developmental disorders, that are used for self-soothing or sensory stimulation.

Statistically Significant

A determination that a relationship between two or more variables is caused by something other than chance at a specified level of probability.

Chance Variations

Random fluctuations in data or phenomena that are not attributable to any specific, identifiable cause.