ABC Company's Sales Are $100,000, Fixed Costs Are $50,000, and Variable

question 25

Multiple Choice

ABC Company's sales are $100,000, fixed costs are $50,000, and variable costs are $30,000.ABC Company's contribution margin ratio is:

• A)20%.
• B)30%.
• C)50%.
• D)70%.

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Definitions:

Regulatory Agency

A governmental body responsible for exercising supervisory authority over specific areas of economic or social activity, ensuring compliance with laws and regulations.

Carbon Tax System

A tax levied on the carbon content of fuels to incentivize reduction in greenhouse gas emissions.

Tax Rate

The percentage at which income, transactions, or properties are taxed by a government authority.

Carbon Emissions

The release of carbon dioxide into the atmosphere, contributing to global climate change, primarily from burning fossil fuels and deforestation.