Find the "Contribution Profit Margin" Based on the Following Information

question 3

Multiple Choice

Find the "contribution profit margin" based on the following information: cash fixed costs = $60,000; variable costs = $70,000; and sales = $100,000.

• A) 70%
• B) 60%
• C) 30%
• D) 40%
• E) 100%

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Definitions:

Direct Question

A question that by and large can be answered with a yes or no response or at most by a very short response consisting of a few words.

Primary User

The primary user is the main individual or group of individuals who are the intended users or beneficiaries of a product or service.

Direct Negative-No Question

A type of question that prompts a negative response and is directly tailored to confirm a particular assumption or piece of information.

Opinion Approach

An approach whereby a salesperson shows that the buyer’s opinion is valued.