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:

Interorganizational IS

Information systems that facilitate communication and transaction between different organizations, enhancing collaboration.

Vertical Integration

Vertical Integration is a strategy whereby a company owns or controls its suppliers, distributors, or retail locations to control its value or supply chain.

Supply Chain

The flow of materials, information, money, and services from suppliers of raw materials through factories and warehouses to the end customers.

Upstream Flow

In supply chain management, refers to the activities involved in the initial stages, focusing on the extraction or production of raw materials and components.