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:

Pay Grade Sizes

The levels or categories within an organization's pay structure that determine the range of salaries for different groups of jobs, based on their evaluation.

Natural Breaks

Points in data or a process where there is a significant gap or change, often used to categorize or segment information.

Correlation Coefficient

A statistical measure that describes the extent to which two variables change together.

Inverse Relationship

An inverse relationship refers to a situation where one variable increases while the other variable decreases, showing a negative correlation between the two.