[The Following Information Applies to the Questions Displayed Below

question 38

Multiple Choice

[The following information applies to the questions displayed below.]
Grayson Enterprises manufactures springs and shock absorbers.Springs account for 40% of the company's total sales revenue,whereas shocks account for about 60%.The contribution margin ratios for springs and shocks are 45% and 35%,respectively.Grayson's fixed costs average $450,000 per month.
-In order to earn an operating income of $252,000,Grayson's monthly sales must be:

• A)$1,700,000.
• B)$1,750,000.
• C)$1,800,000.
• D)$1,850,000.

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Definitions:

Nash Equilibrium

A principle in game theory stating that there is no advantage for any player to alter their strategy if all other participants maintain their current strategies.

Simultaneous Move Game

A game theory model where all players make their decisions or moves at the same time, without knowledge of the others' choices.

Prisoner's Dilemma

A situation in game theory where two individuals acting in their own self-interest do not produce the optimal outcome.

Lockout

A situation where an employer prevents employees from entering the workplace, typically during a labor dispute.