Assume the following (1) variable expenses = $300,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 25%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true?

Multiple Choice

• The variable expense ratio is 300%

• The total sales = $400,000

• The total fixed expenses = $75,000

• The total contribution margin = $225,000