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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 ________.


Definitions:

Residual Income

The income that an entity generates after accounting for all operational and capital expenses, often used to assess the profitability of investment centers within a business.

Return on Investment

A measure of the profitability of an investment, calculated as the ratio of net profits to the initial cost of the investment.

Investment Decisions

The process of making choices about where to allocate resources and capital in order to achieve the highest returns.

Multidimensional Performance

An approach to performance measurement that considers various aspects such as financial, operational, and people metrics to assess the overall effectiveness and efficiency.

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