If the Contribution Margin Ratio Is 0

question 53

Multiple Choice

If the contribution margin ratio is 0.40,targeted operating income is $50,000,and fixed costs are $75,000,then sales volume in dollars is ________.

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

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Definitions:

Staphylococcus Contamination

The presence of Staphylococcus bacteria in a product or environment, potentially leading to food poisoning or infections.

Overripe Bananas

Overripe bananas refer to bananas that have passed their optimal ripeness, often characterized by a very soft texture and brown or black spots on the skin, but are still edible and frequently used in baking.

Customer Satisfaction

The measure of how products or services supplied by a company meet or exceed customer expectations.

Maximizing Sales

This term is about strategies or practices aimed at increasing the amount of sales of a product or service to its highest possible level.