Hartman Co

question 169

Multiple Choice

Hartman Co. has fixed costs of $36,000 and a contribution margin ratio of 24%. If expected sales are $200,000, what is the margin of safety as a percent of sales?

• A) 6%.
• B) 25%.
• C) 33%.
• D) 50%.
• E) 75%.

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Definitions:

Age

The length of time that a person or object has existed, typically measured in years from the date of birth or creation.

Encoding

The process by which information is transformed into formats that can be stored in memory.

Automatization

The process by which tasks become automatic after extensive practice, requiring less cognitive effort to perform.

Storage

In the context of cognition, refers to the retention of information in the memory over time.