Use the Information Below to Answer the Following Question(s)

question 118

Multiple Choice

Use the information below to answer the following question(s) .
Express Bus Company operates a bus route that takes passengers from Cleveland to Chicago every day. Assume the bus tickets sell for $50 per rider; the bus line's variable costs are $35 per rider; and its fixed costs are $75,000 each month.
-What is the contribution margin ratio at Express Bus Company?

• A) 70%
• B) 30%
• C) 333%
• D) 15%

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Definitions:

Declining Home Prices

A decrease in the market value of residential properties, which can affect homeownership affordability and the overall economy.

Appraisal Right

A shareholder's right to have their shares appraised and to receive monetary compensation in lieu of unfavorable corporate actions, such as mergers or acquisitions.

Merger

A merger is the combination of two or more companies into a single entity, typically to combine resources and streamline operations for better efficiency and growth.

Short-form Merger

A type of merger that allows a parent company to merge with its subsidiary without the approval of the subsidiary's shareholders.