A Company Has Total Fixed Costs of $200,000 and a Contribution

question 59

Multiple Choice

A company has total fixed costs of $200,000 and a contribution margin ratio of 20%.The total sales necessary to break even are

• A) $800,000.
• B) $1,000,000.
• C) $250,000.
• D) $240,000.

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Definitions:

Held To Maturity

A classification for investments in debt securities that the company has the positive intent and ability to hold until they mature.

Carrying Value

The book value of an asset or liability on a company's balance sheet, after accounting for depreciation, amortization, or impairment.

Held-To-Maturity

A classification for investment securities which the investor has the intent and ability to hold until they mature.

Market Value

The current quoted price at which an asset or service can be bought or sold in a marketplace.