If the Contribution Margin Ratio Is 32%, Target Operating Income

question 250

Multiple Choice

If the contribution margin ratio is 32%, target operating income is $60,000, and the sales revenue needed to achieve the target operating income is $400,000, what are total fixed expenses?

• A) $68,000
• B) $128,000
• C) $19,200
• D) $188,000

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Definitions:

Team Goal Setting

The process of defining and agreeing on objectives within a team to focus efforts and foster unity in pursuit of common aims.

Individual Goal Setting

The process of establishing specific, measurable, achievable, relevant, and time-bound (SMART) objectives for oneself to achieve personal or professional success.

Participation

The act of taking part or being actively involved in activities or decisions within a group, organization, or any collective scenario.

Challenging Goals

Objectives set by an individual or an organization that are difficult to achieve and require significant effort and determination.