Refer to the Information Provided in Figure 8

question 269

Multiple Choice

Refer to the information provided in Figure 8.3 below to answer the questions that follow. Figure 8.3
-Refer to Figure 8.3. In this economy, if income is $200 aggregate saving will be

• A) $0.
• B) $130.
• C) $200.
• D) $270.

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Definitions:

Contribution Margin

The gap between sales income and variable expenses, showing the extent to which income aids in offsetting fixed expenses and creating earnings.

Cost-Volume-Profit

An analysis tool used to determine how changes in costs and volume affect a company's operating income and net income.

Sales Volume

The total quantity of products or services sold by a company during a specific period of time.

Contribution Margin Ratio

The percentage of each sales dollar that contributes to covering fixed costs and generating profit.