If the Contribution Margin Ratio Is 0

question 101

Multiple Choice

If the contribution margin ratio is 0.40,targeted net profit is $50 000,and fixed costs are $75 000,then sales volume in dollars is:

• A)$250 000.
• B)$312 500.
• C)$350 000.
• D)$275 000.

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Definitions:

Incentive

A factor, often external, that motivates or encourages individuals to act or behave in a certain way.

Biological Motives

Biological motives are innate needs that regulate survival and reproduction, encompassing hunger, thirst, pain avoidance, and sexual desire.

Social Motives

The psychological factors that drive individuals to seek social connections, acceptance, and positions within social structures.

Social Motives

Driving forces behind individuals' desires to interact, affiliate, and form relationships with others.