The Monterra Company Provided the Following Information $\begin{array}{ll}\text { Sales } & \$ 500,000 \\\text { Variable costs } & \$ 100,000 \\\text { Fixed costs } & \$ 200,000\end{array}$

question 110

Essay

The Monterra Company provided the following information:
$\begin{array}{ll}\text { Sales } & \$ 500,000 \\\text { Variable costs } & \$ 100,000 \\\text { Fixed costs } & \$ 200,000\end{array}$ A. What is the contribution margin ratio?
B. What is the level of sales in doll ars necessary to generate a profit of $\$ 40,000$ ?
C. What is the contribution margin ratio if the sal es price is increased by $10 \%$ ?
D. Using the information in part $\mathrm { C }$ , what level of sales in doll ars is necessary to generate a profit of $\$ 40,000$ ?

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Definitions:

Phobias

Irrational and overwhelming fears of objects, creatures, or situations, often leading to avoidance behavior.

Paradoxical Intent

A cognitive therapy technique in which an individual deliberately practices or exaggerates a feared behavior or thought in order to diminish its power.

Aversive Therapy

A form of behavioral therapy that involves using unpleasant stimuli to reduce or eliminate undesirable behavior.

Reinforcement

In behavioral psychology, it refers to any stimulus which strengthens or increases the probability of a specific response.