If the Contribution Margin Ratio Is 25%,fixed Costs Are $50

question 32

Short Answer

If the contribution margin ratio is 25%,fixed costs are $50 000,and sales revenue is $240 000 then profit is ____________________.

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Definitions:

Holding Cash

The practice of keeping liquid assets on hand for transactional purposes or as a precaution against unforeseen expenses.

Maturity Matching Principle

This principle suggests that the duration of assets and liabilities in a company's portfolio should be aligned, meaning short-term assets should be financed with short-term liabilities, and long-term assets with long-term liabilities.

Long-term Funding

Financing obtained for a period longer than a year, used for acquiring assets, structural projects, or significant investments.

Short-term Funding

Financing obtained for a period of one year or less, often used to manage the day-to-day operational costs of a business.