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

question 36

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

---

Definitions:

Sales Forecast

An estimation of the revenue that a company expects to receive from the sale of goods or services in a future period.

Marketing Concept

The philosophy of a business in which the wants and needs of customers are determined before goods and services are produced.

Competitive Advantage

A situation or factor that gives a business a dominant or advantageous position over its rivals.

Marketing Strategy

A comprehensive plan formulated by businesses to achieve specific marketing objectives and targets over a specific time period.