If the contribution margin ratio for France Company is 45%, sales were $425,000, and fixed costs were $100,000, what was the income from operations?
A) $233,750
B) $91,250
C) $191,250
D) $133,750

Question

Quizplus · Accepted Answer

The contribution margin is calculated as 45% of sales, which is $425,000 * 0.45 = $191,250. Subtracting the fixed costs of $100,000 from the contribution margin gives an income from operations of $91,250.

If the Contribution Margin Ratio for France Company Is 45