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Carrasco Corporation Has a Contribution Margin Ratio of 40% and Annual

Question 81

Multiple Choice

Carrasco Corporation has a contribution margin ratio of 40% and annual fixed costs of $600,000. The sales manager has proposed that one additional sales person be hired at a salary of $50,000 annually. How much would sales have to increase to justify hiring the additional sales person?


A) $50,000
B) $125,000
C) $100,000
D) $83,333

Correct Answer:

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