If Sales Total $2,000,000, Fixed Costs Total $800,000, and Variable

question 178

True/False

If sales total $2,000,000, fixed costs total $800,000, and variable costs are 60% of sales, the contribution margin ratio is 40%.

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Definitions:

Invoice

A document issued by a seller to a buyer that outlines the goods or services sold, their prices, and the payment terms.

Outstanding Balance

The amount of money owed that remains in a borrower's account, excluding interest and fees, that has not yet been paid.

Invoice

A document issued by a seller to a buyer, indicating items sold, prices, date of shipment, delivery and payment terms.

Payment

The act of giving money in exchange for goods or services.