The Contribution Margin Ratio of Lime Corporation's Only Product Is

question 131

Multiple Choice

The contribution margin ratio of Lime Corporation's only product is 75%.The company's monthly fixed expense is $688,500 and the company's monthly target profit is $20,000.The dollar sales to attain that target profit is closest to:

• A)$531,375
• B)$944,667
• C)$918,000
• D)$516,375

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Definitions:

Risk-Free Return

The return on investment that is guaranteed, with no risk of financial loss.

Wildcat Fund

An investment fund that takes higher risks in anticipation of higher rewards, often investing in unproven sectors or speculative ventures.

Information Ratio

A measure of portfolio returns beyond the returns of a benchmark, relative to the volatility of those excess returns.

Risk-Free Return

The theoretical return on an investment with no risk of financial loss, traditionally associated with government bonds or bills.