Channing Corporation Has Two Divisions, C and D

question 140

Multiple Choice

Channing Corporation has two divisions, C and D. The overall company contribution margin ratio is 30%, with sales in the two divisions totaling $750,000. If variable expenses are $450,000 in Division C and if Division C's contribution margin ratio is 25%, then sales in Division D must be:

• A)$75,000
• B)$225,000
• C)$150,000
• D)$300,000

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Definitions:

Sole Proprietorship

A business structure where a single individual owns, manages, and is responsible for all aspects of the business.

Married Couple

A legally wedded partnership comprising two individuals who have undergone a marriage ceremony and are recognized as spouses.

Angel Investor

An angel investor is a wealthy individual who provides capital to start-ups or entrepreneurs, often in exchange for ownership equity or convertible debt.

Life Cycle

The series of stages through which something (such as a living organism, product, or business) goes from its beginning to its end.