The Records of Gemini Company Show a Contribution Margin Ratio

question 26

Multiple Choice

The records of Gemini Company show a contribution margin ratio of 40%.The company desires to earn a profit of $35,000 and has fixed costs of $70,000.What sales revenue would have to be generated in order to earn the desired profit?

• A) $87,500
• B) $262,500
• C) $175,000
• D) $42,000

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Definitions:

Slope

The slope is the measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.

Sales Data

Information collected about the sales performance of products or services, often used for analysis and business strategy planning.

Advertising Data

Information collected concerning the performance and outcomes of advertising campaigns, including metrics like reach, impressions, leads generated, and sales.

Sum Of Squares

A statistical technique used to measure the dispersion or variation within a data set, calculated by squaring each deviation from the mean and summing these squares.