A Company with Monthly Revenue of $120,000,variable Costs of $50,000,and

question 98

Multiple Choice

A company with monthly revenue of $120,000,variable costs of $50,000,and fixed costs of $40,000 has a contribution margin of:

• A)$90,000.
• B)$80,000.
• C)$70,000.
• D)$30,000.

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Definitions:

Linear Forecast

A prediction method that uses historical data to fit a straight line and project future trends in demand, sales, or other financial indicators.

Hierarchy of Effects

A theoretical model designed to explain the process by which individuals move from lack of awareness about a product to actual purchase behavior.

Advocacy Stage

A phase in the consumer decision-making process where individuals or groups promote or support a product, service, or idea.

Loyal Consumers

Customers who repeatedly purchase from a brand or business due to satisfaction, preference, or engagement with the product or service.