Data Concerning Three of the Activity Cost Pools of Burlingame

question 56

Multiple Choice

Data concerning three of the activity cost pools of Burlingame LLC,a legal firm,have been provided below: The activity rate for the "meeting with clients" activity cost pool is closest to:

• A)$1,102,050 per meeting hour
• B)$63 per meeting hour
• C)$116 per meeting hour
• D)$158 per meeting hour

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Definitions:

Break-even Point

The point where total sales revenue is equal to total expenses, yielding neither profit nor loss.

Sales Mix

Sales mix is the proportion of different products or services that a business sells, impacting the overall profitability based on the differing margins of each item.

Operating Income

Profit realized from a business's core operations, calculated before taxes and interest.

Contribution Margin Ratio

A financial metric showing the percentage of sales revenue remaining after variable production costs have been deducted, indicating how much contributes towards covering fixed costs and generating profits.