If the Contribution Margin Ratio Is 0

question 74

Multiple Choice

If the contribution margin ratio is 0.25,targeted operating income is $50,000,and targeted sales volume in dollars is $250,000,then total fixed costs are ________.

• A) $11,500
• B) $15,000
• C) $20,000
• D) $12,500

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Definitions:

Administrative Agencies

Government bodies responsible for implementing laws and regulations, often with a specific focus such as healthcare, education, or transportation.

Executive Branch

Refers to the part of government responsible for enforcing laws and policies, headed by the President in the United States.

Legislative Branch

The part of government that makes laws, often consisting of a bicameral (two-house) system, such as the U.S. Congress, made up of the Senate and the House of Representatives.

Administrative Agencies

Governmental bodies responsible for the oversight and administration of specific functions, such as regulation or enforcement.