If Sales Are $820,000, Variable Costs Are 55% of Sales

question 22

Multiple Choice

If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, what is the contribution margin ratio?

• A) 45%
• B) 55%
• C) 62%
• D) 32%

---

Definitions:

Journal

An accounting record where financial transactions are entered in chronological order before being posted to accounts in the general ledger.

Dose Form

The physical form in which a medication is produced and administered, examples include tablets, capsules, liquid, or injection.

Absorption

The process by which substances are taken up into or across tissues, such as the absorption of nutrients by the digestive system or chemicals through the skin.

Cephalosporins

A class of antibiotic drugs used to treat a wide variety of bacterial infections, operating by disturbing the synthesis of the bacterial cell wall.