If the Contribution Margin Ratio Is 0

question 14

Multiple Choice

If the contribution margin ratio is 0.60, targeted operating income is $50,000, and fixed costs are $75,000, then sales volume in dollars is ________. (Round the final answer to the nearest dollar.)

• A) $312,500
• B) $208,333
• C) $125,000
• D) $83,333

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Definitions:

Divergent Thinking

Divergent thinking is a thought process or method used to generate creative ideas by exploring many possible solutions.

Flynn Effect

A term describing the observed substantial and long-term increase in both fluid and crystallized intelligence test scores measured in many parts of the world over the 20th century.

Predictive Validity

The extent to which a score on a scale or test predicts future performance or behavior.

Intrapersonal Intelligence

Intrapersonal intelligence is the capacity to understand oneself, including one's emotions, motivations, and thoughts.