If Sales Are $820,000, Variable Costs Are 55% of Sales

question 22

Multiple Choice

If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, what is the contribution margin ratio?

• A) 45%
• B) 55%
• C) 62%
• D) 32%

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Definitions:

Denmark Vesey

An African-American man who planned a large slave rebellion in Charleston, South Carolina, in 1822 but was betrayed before it could begin.

Work Pace

The speed or rate at which work tasks are performed within a workplace, often influenced by various factors including technology, management practices, and worker motivation.

Underground Railroad

A network of secret routes and safe houses established in the United States during the early to mid-19th century to help enslaved African Americans escape to free states and Canada.

Fugitive Slave Act

Historical laws in the United States that provided for the return of enslaved people who escaped from one state into another state or territory.