If Fixed Costs Were Increased by $9,000 and the Contribution

question 2

Multiple Choice

If fixed costs were increased by $9,000 and the contribution margin ratio remained at 30 percent, then sales must increase by _________ in order to cover the additional fixed expenses.

• A) $27,000
• B) $30,000
• C) $33,000
• D)$54,000

---

Definitions:

Gram

A unit of measure in the metric system equal to one thousandth of a kilogram used primarily for quantifying mass or weight.

Prefix

A morpheme added at the beginning of a word to alter its meaning or create a new word.

Abbreviation L

Stands for liter, a metric unit of volume equal to 1,000 milliliters or approximately 1.06 quarts.

Dx

An abbreviation for diagnosis, the process of identifying a disease or condition from its signs and symptoms.