If the contribution margin ratio is 0.25, targeted operating income is $50,000, and targeted sales volume in dollars is $260,000, then total fixed costs are ________.
A) $35,000
B) $210,000
C) $157,500
D) $15,000

Name: If the contribution margin ratio is 0.25, targeted operating income is $50,000, and targeted sales volume in dollars is $260,000, then total fixed costs are ________. A) $35,000 B) $210,000 C) $157,500 D) $15,000
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Question

Quizplus · Accepted Answer

(X + $50,000)/0.25 = $260,000; X = 15,000

If the Contribution Margin Ratio Is 0