If the Monthly Sales Volume Required to Break Even Is

question 120

Multiple Choice

If the monthly sales volume required to break even is $190,000 and monthly fixed costs are $55,900,the contribution margin ratio is closest to:

• A)29%.
• B)71%.
• C)23%.
• D)340%.

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Definitions:

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting cognitions (beliefs, attitudes, or behaviors).

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Self-Censorship

The act of withholding one's thoughts, opinions, or feelings due to fear of social or official repercussions.

Illusion of Vulnerability

A cognitive bias where individuals underestimate their susceptibility to negative events.