Raven Company Has a Target of $70,000 Pre-Tax Income

question 18

Multiple Choice

Raven Company has a target of $70,000 pre-tax income.The contribution margin ratio is 30%.What amount of dollar sales must be achieved to reach the goal if fixed costs are $36,000?

• A)$23,333.
• B)$36,000.
• C)$300,000.
• D)$353,333.
• E)$420,000.

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Definitions:

Survey

A research method that involves collecting data from a sample of individuals through their responses to questions, aimed at gathering information about attitudes, behaviors, or characteristics.

Correlational Research

A type of non-experimental research method in which a researcher measures two variables, understands and assesses the statistical relationship between them without any causal assumption.

Independent Variables

Factors in an experiment that are deliberately altered to test their impact on the variables being measured.

Manipulating Variables

The process of changing one or more variables in an experiment to observe the effects on other variables.