Below Is Accounting Information for Cascade Company for 2013

question 192

Multiple Choice

Below is accounting information for Cascade Company for 2013:
-What were the total assets at year-end?

• A)$320,000
• B)$296,000
• C)$316,000
• D)$457,000
• E)$116,000

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Definitions:

Contribution Margin Ratio

The proportion of sales revenue that exceeds variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.

Operating Leverage

A measure of how revenue growth translates into growth in operating income and the degree to which a company can increase operating income by increasing revenue.

Break-Even Point

The point at which total costs match total earnings from production or sales, leading to neither a profit nor a loss.

Maintenance Costs

The expenses incurred to keep an asset in working condition or restore it to proper operation.