Dorian Company Produces and Sells a Single Product

question 184

Multiple Choice

Dorian Company produces and sells a single product. The product sells for $60 per unit and has a contribution margin ratio of 40%. The company's monthly fixed expenses are $28,800.
-If Dorian Company desires a monthly net operating income equal to 10% of sales, monthly sales will have to be:

• A) $90,000
• B) $45,600
• C) $120,000
• D) $96,000

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Definitions:

Reflex Arc

A reflex arc is the neural pathway that controls a reflex action, typically consisting of a sensory neuron, a motor neuron, and sometimes one or more interneurons.

Motor Neuron

A type of neuron that transmits nerve impulses from the central nervous system to muscles or glands, causing them to act.

Effector

An organ, gland, or muscle capable of responding to a stimulus, especially a nerve impulse.

Mixed Nerve

A nerve containing both afferent (sensory) and efferent (motor) nerve fibers, allowing it to transmit signals in both directions between the brain and various parts of the body.