Arthur Company Had the Following Data for the Year Just

question 98

Multiple Choice

Arthur Company had the following data for the year just ended:
$\begin{array}{|l|r|}\hline \text { Sales } & 4,000 \text { units } \\\hline \text { Sales price } & \$ 60 \text { per unit } \\\hline \text { Variable cost } & \$ 18 \text { per unit } \\\hline \text { Fixed costs } & \$ 42,000 \\\hline\end{array}$


-If the company wants to increase its total contribution margin by 40% in the next year,all other factors remaining the same,by how much will it need to increase its sales?

• A) $96,000.
• B) $50,400.
• C) $67,200.
• D) $72,000.

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Definitions:

False News

Information that is fabricated or misrepresented with the intent to deceive or mislead.

Repetition

The act or process of repeating something, often used as a method of learning or emphasizing.

Confounding Variables

Variables that the researcher failed to control or eliminate, potentially leading to a false association between the studied variables.

Random Assignment

A method used in experiments that assigns participants to different groups using randomization, ensuring each participant has an equal chance of being in any group.