If Sales Are $425,000, Variable Costs Are 62% of Sales

question 123

Multiple Choice

If sales are $425,000, variable costs are 62% of sales, and operating income is $50,000, what is the contribution margin ratio?

• A) 38%
• B) 26.8%
• C) 11.8%
• D) 62%

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Definitions:

Programming Language

A formal language comprising a set of instructions that produce various kinds of output and are used in computing to implement algorithms.

Compile-time Errors

Errors in a program's code detected by the compiler before the program is run.

Runtime Errors

Errors that occur during the execution of a program, which can cause the program to stop unexpectedly.

Machine Language

The set of binary codes directly understood by a computer's CPU, representing the most basic level of programming language.