[The Following Information Applies to the Questions Displayed Below

question 2

Multiple Choice

[The following information applies to the questions displayed below.]
Chic Jewelers views each branch location as an investment center.The local branch reported the following results for the current year:

-The contribution margin ratio of the local branch is closest to:

• A)59%.
• B)41%.
• C)49%.
• D)52%.

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Definitions:

Par

The face value of a bond or the stock value stated on the certificate, unrelated to its market value.

State Charter

A legal document issued by a state that grants rights, privileges, and operating terms to a corporation.

Authorized Stock

This refers to the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of stock in the market.