Better Bonds
Better Bonds Provided the Following Data -Refer to Plastic Gym

question 32

Multiple Choice

Better Bonds
Better Bonds provided the following data: $\begin{array}{lr}\text { Sales } & \$ 540,000 \\\text { Variable costs } & \$ 378,000 \\\text { Fixed costs } & \$ 120,000 \\\text { Expected production and sales in units } & 40,000\end{array}$
-Refer to Plastic Gym. The company expects tree house demand to increase from 4,000 to 8,000 units per year. What is the new contribution margin ratio?

• A) 38%
• B) 40%
• C) 50%
• D) 60%

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Definitions:

Registration of Securities

The process of filing the necessary documents with the Securities and Exchange Commission before securities can be offered for sale to the public.

Financial Soundness

An indication that an entity is stable, solvent, and has the capability to meet its financial obligations.

EDGAR

Stands for Electronic Data Gathering, Analysis, and Retrieval system, a database maintained by the U.S. Securities and Exchange Commission for corporate filings.

Automated Collection

The use of computerized systems to gather debts or receivables efficiently, often used by financial institutions and collection agencies.