If the Contribution Margin Ratio Is 0

question 145

Multiple Choice

If the contribution margin ratio is 0.40,targeted operating income is $80,000,and targeted sales volume in dollars is $500,000,then the degree of operating leverage is ________.

• A) 1.50 times
• B) 2.00 times
• C) 2.50 times
• D) 3.00 times

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Definitions:

Reduced

A process or result of making something smaller or less in amount, degree, or size.

Cyclic Electron Pathway

A photosynthetic process where electrons are recycled in order to produce ATP without the production of NADPH or oxygen.

Noncyclic Electron Pathway

A pathway of photosynthesis where electrons flow in a linear manner from water to NADP+, producing NADPH without the return of electrons to the light-absorbing pigment.

Calvin Cycle

A set of chemical reactions that take place in chloroplasts during photosynthesis, where carbon dioxide is converted into glucose.