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%

Recognize the application of leading and lagging indicators in performance measurement and strategy implementation.

Understand the concept and implications of scorecard cascading in large, decentralized organizations.

Understand the components and elements of the balanced scorecard.

Identify leading and lagging indicators in performance measurement.

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Definitions:

Self-Efficacy

Self-efficacy refers to an individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Social Anxiety

The fear of social situations that involve interaction with other people, often driven by the fear of being judged or embarrassed.

Psychological Loneliness

A state of mind characterized by a significant discrepancy between desired and actual social relationships, leading to feelings of isolation.

Intrapersonal Loneliness

A state of feeling alone and isolated due to a lack of close or meaningful personal relationships.