Mark Corporation Produces Two Models of Calculators

question 95

Multiple Choice

Mark Corporation produces two models of calculators. The Business model sells for $60, and the Math model sells for $40. The variable expenses are given below: The fixed expenses are $75,000 per month. The expected monthly sales of each model are: Business, 1,000 units; Math, 500 units.
-The contribution margin ratio for the Business model is:

• A)40%
• B)75%
• C)85%
• D)60%

---

Definitions:

Securities and Exchange Commission

A federal agency responsible for regulating the securities industry, enforcing federal securities laws, and overseeing the stock and options exchanges in the United States.

Prospectus

A document that companies issue to potential investors, detailing the financial performance and risks involved in an investment offering.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Net Worth

The total value of all assets owned by an individual or entity minus any liabilities or debts, representing the owner's equity in those assets.