Refer to the Following Gunther's Emporium Information to Answer the Question(s)below

question 19

Multiple Choice

Refer to the following Gunther's Emporium information to answer the question(s) below:
Gunther's Emporium expects net sales of $2,396,919 for the upcoming year, with variable expenses totaling $1,813,443 and fixed expenses of $412,190.
-Using break-even analysis, what is Gunther's contribution margin?

• A)4 percent
• B)32 percent
• C)24 percent
• D)12 percent

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Definitions:

Credit

An accounting entry that increases a liability or equity account, or decreases an asset or expense account, represented on the right side of the ledger.

Closing Entry Process

The accounting procedure used at the end of an accounting period to transfer balances from temporary accounts to permanent accounts.

Revenue Accounts

Accounts that track the income earned from the sale of goods and services, or the increase in equity resulting from the operations of an organization.

Owner's Capital Account

An account on a company's balance sheet that represents the owner's invested capital plus retained earnings minus withdrawals.