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5. Perisia, Inc. has fixed costs of $200,000 and a contribution margin ratio of 40%. How much sales revenue must be earned for a profit
5. Perisia, Inc. has fixed costs of $200,000 and a contribution margin ratio of 40%. How much sales revenue must be earned for a profit of $50,000? A. $125,000 B. $500,000 C. $625,000 D. $1,000,000 6. Boose Corp has fixed costs of $500,000 and a contribution margin ratio of 25%. Currently, sales are $3,000,000. What is Boose's margin of safety? A. $1,000,000 B. $2,000,000 C. $3,000,000 D. $4,000,000 7. Frank Corp has a contribution margin of $600,000 and profit of $150,000. What is its degree of operating leverage? A. .25 B.4 C. 2.5 D. 3 8. In year ended December 31, 2019, Frank Corp had a contribution margin of $600,000 and profit of $150,000. If sales increase 30%, what will profits be in December 31,2020? A. $330,000 B. $195,000. C. $180,000 D. $600,000
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