Abrams Co Has Total Fixed Costs of $240,000 and a Contribution

question 61

Essay

Abrams Co. has total fixed costs of $240,000 and a contribution margin ratio of 40%. If rent expense increases by $5,000, how much will sales have to increase to cover this increase in costs?

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Definitions:

Indirect Leadership

A style of leadership where the leader influences others through indirect means, such as setting a vision, creating an environment conducive to growth, and inspiring via example, rather than direct command and control.

Emailing

A method of exchanging digital messages between people using electronic devices.

Texting

The act of sending written messages through electronic means, specifically via mobile phones.

Rational

Based on clear thought and reason; characterized by the ability to make logical, practical, and effective decisions.