During Its Most Recent Fiscal Year, Dover, Inc

question 103

Multiple Choice

During its most recent fiscal year, Dover, Inc. had total sales of $3,200,000. Contribution margin amounted to $1,500,000 and pretax income was $400,000.
- What amount should have been reported as fixed costs in the company's contribution margin income statement for the year in question?

• A) $1,900,000.
• B) $2,800,000.
• C) $1,100,000.
• D) $1,300,000.
• E) $1,700,000.

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Definitions:

Incentive-based Regulation

A regulatory approach that uses rewards or penalties to motivate entities to perform in ways that align with policy goals or regulatory standards.

Command-and-control Regulation

Regulatory approach where the government sets specific standards or limitations on the activities of businesses, often related to environmental or safety measures.

Pollution Permits

Allowances provided by government regulations that permit companies to emit a certain level of pollutants.

Global Warming

The long-term increase in Earth's average surface temperature, primarily due to human activities such as fossil fuel burning.