If the Contribution Margin Ratio Is 32%, Target Operating Income

question 250

Multiple Choice

If the contribution margin ratio is 32%, target operating income is $60,000, and the sales revenue needed to achieve the target operating income is $400,000, what are total fixed expenses?

• A) $68,000
• B) $128,000
• C) $19,200
• D) $188,000

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Definitions:

Hinduism

A major religious and cultural tradition of South Asia, developed from Vedic religion.

Buddhism

A spiritual tradition and religion based on the teachings of Buddha, focusing on personal spiritual development and the attainment of a deep insight into the nature of life.

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Structures and mechanisms of social order and cooperation governing the behavior of a set of individuals within a given human community.

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The shared ideas, values, and assumptions within a society that shape behaviors, traditions, and customs, influencing how individuals perceive and interact with the world.