Turner Company's Contribution Margin Ratio Is 15

question 49

Multiple Choice

Turner Company's contribution margin ratio is 15%.If the degree of operating leverage is 12 at the $150,000 sales level,operating profit at the $150,000 sales level must equal:

• A)$1,500.
• B)$2,700.
• C)$2,160.
• D)$1,875.

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Definitions:

Labor Costs

The total expenditure incurred by employers for the compensation of their workforce, including wages, benefits, and taxes.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees over a specific period.

Automation

The use of machinery and technology to perform tasks without human intervention, often to improve efficiency and productivity.

Child Labor

The employment of children in any work that deprives them of their childhood, interferes with their ability to attend school, and is mentally, physically, socially, or morally harmful.