If the Contribution Margin Ratio for Harrison Company Is 38%,sales

question 12

Multiple Choice

If the contribution margin ratio for Harrison Company is 38%,sales were $425,000,and fixed costs were $100,000,what was the income from operations?

• A)$163,500
• B)$161,500
• C)$54,730
• D)$61,500

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Definitions:

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise when the other party has relied upon it to their detriment.

Preexisting Duty

An obligation or duty that already exists under contract law and does not constitute valid consideration for a new agreement.

Rescission

The act of canceling, voiding, or annulling a contract, returning the parties to their positions prior to the contract.

Usury

Charging an illegal rate of interest.