EM Sales Had $2,200,000 in Sales Last Month

question 51

Multiple Choice

EM Sales had $2,200,000 in sales last month.The contribution margin ratio was 30% and operating profits were $180,000.What sales volume does EM's need to yield a $240,000 operating profit?

• A)$600,000.
• B)$2,020,000.
• C)$2,400,000.
• D)$2,440,000.

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Definitions:

Diversification Analysis

Diversification Analysis involves assessing the potential benefits and risks of expanding a company's range of products or markets as a strategy to reduce dependence on a single product or market.

Product Development

The process of bringing a new product or service to market, from ideation through design, manufacturing, and marketing.

Market Penetration

A metric showing the extent of purchases or uptake of a product or service against the total possible market for it.

Market Development

A business growth strategy focusing on increasing sales of existing products to new markets or demographic segments.