Henderson Co

question 1

Multiple Choice

Henderson Co. has fixed costs of $36,000 and a contribution margin ratio of 24%. If expected sales are $200,000, what is the margin of safety as a percent of sales?

• A) 25%.
• B) 75%.
• C) 6%.
• D) 33%.
• E) 50%.

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Definitions:

Elected Officials

Individuals chosen by voters to hold public office and make legislative or executive decisions.

Government Salaries

Payments made to employees of the government, influencing public sector spending and economic activity.

Budget Process

The procedure by which governments create and approve a budget, detailing the planned revenues and expenditures for the upcoming fiscal period.

Providing Externalities

The act of producing results (positive or negative) that affect third parties who are not directly involved in the economic transaction.