If Sales Are $820,000, Variable Costs Are 45% of Sales

question 4

Multiple Choice

If sales are $820,000, variable costs are 45% of sales, and operating income is $260,000, what is the contribution margin ratio?

• A) 45%
• B) 55%
• C) 62%
• D) 32%

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Definitions:

Salmon Populations

Groups of salmon species living in specific regions, often tracked for conservation, fishing, and ecological study purposes.

Juveniles From Hatcheries

Young fish or other aquatic animals that have been bred and raised in artificial environments like hatcheries for various purposes, including stocking and conservation.

Dams

Structures built across rivers or streams to control the flow of water for the purposes of water storage, flood prevention, irrigation, and hydroelectric power generation.

Wetlands

Ecosystems characterized by the presence of standing water, which support a diverse range of plant and animal life and provide critical ecological services.