Solved

Management Expects Total Sales of $40 Million,a Margin of Safety

Question 34

Multiple Choice

Management expects total sales of $40 million,a margin of safety of $10 million,and a contribution margin ratio of 45%.Which of the following estimated amounts is not consistent with this information?


A) Variable costs,$22 million
B) Fixed costs,$13.5 million
C) Operating income,$6 million
D) Break-even sales volume,$30 million

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents