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:

Brick and Mortar

Traditional physical retail outlets and buildings, as opposed to online or virtual stores.

Efficient Funds Transfer

A method of transferring money between accounts or institutions swiftly and with minimal costs, aiming to reduce transaction times.

Online Sales

The process of selling goods and services through the internet.

Retail Storage

The process or space used for the keeping and management of goods or merchandise in stores.