Watson Company Has Monthly Fixed Costs of $83,000 and a 40

question 110

Multiple Choice

Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio.If the company has set a target monthly income of $15,000,what dollar amount of sales must be made to produce the target income?

• A)$245,000
• B)$207,500
• C)$37,300
• D)$170,000
• E)$39,200

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Definitions:

Autoclave

A device used to sterilize equipment and supplies by subjecting them to high-pressure saturated steam at a particular temperature for a specified period.

Wrapped Packs

Sterilized packages containing medical or surgical instruments and supplies, prepared for use in various procedures.

Steam Cycle

A process used in power generation where water is heated to produce steam, which then drives a turbine to generate electricity, followed by condensing the steam back into water to be reheated.

Autoclaved Load

Materials or instruments that have been sterilized in an autoclave, a pressurized steam sterilizer.