Refer to the Above Information

question 30

Multiple Choice

Refer to the above information. The contribution margin of the local branch is:

• A) $5,500,000
• B) $2,400,000.
• C) $2,246,000.
• D) $3,254,000.

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Definitions:

Retained Earnings

The portion of net income not distributed to shareholders but reinvested in the business or kept as reserve.

Operational Funds

Money that is available for daily business activities, including salaries and maintenance, ensuring smooth operations.

Full Capacity Sales

Full capacity sales refer to the maximum sales level that a company can attain with its current production capacity and resources, without additional investment.

Net Income

A company's revenue minus all its expenses and taxes equals its total income.