Hartman Co

question 169

Multiple Choice

Hartman Co. has fixed costs of $36,000 and a contribution margin ratio of 24%. If expected sales are $200,000, what is the margin of safety as a percent of sales?

• A) 6%.
• B) 25%.
• C) 33%.
• D) 50%.
• E) 75%.

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Definitions:

Double Scoop

A term often associated with serving two scoops of ice cream, sometimes used metaphorically to indicate "an additional amount or bonus."

Sales Per Day

The average number of transactions or units sold by a business over a specified period, typically calculated on a daily basis.

Maximize Profit

The process or strategy aimed at achieving the highest possible profit from business operations, often by increasing revenue, reducing costs, or both.

Profit-maximizing Quantity

The level of output at which a firm achieves its highest profit, where marginal cost equals marginal revenue.