part 1

Candle Co. has sales of $200,000 this month, contribution margin of $100,000, monthly fixed cost of $80,000 and profit of $20,000. What is the firms current breakeven volume in dollars? (rounded)

Select one:

a. All listed choices are incorrect.

b. $160,000.

c. $180,000.

d. $140,000.

part 2

Candle Co. has sales of $200,000 this month, contribution margin of $100,000, monthly fixed cost of $80,000 and profit of $20,000. What is the firms current breakeven ratio to sales? (rounded)

Select one:

a. All listed choices are incorrect.

b. 0.80.

c. 0.70.

d. 0.60.

part 3

Candle Co. has sales of $200,000 this month, contribution margin of $100,000, monthly fixed cost of $80,000 and profit of $20,000.What is the firms current operating leverage number? (rounded)

Select one:

a. 5.00.

b. All listed choices are incorrect.

c. 0.20.

d. 0.40.

part 4

Candle Co. has sales of $200,000 this month, contribution margin of $100,000, monthly fixed cost of $80,000 and profit of $20,000. What is the firms current margin of safety ratio to sales [ie., safety margin ratio]? (rounded)

Select one:

a. 0.20.

b. All listed choices are incorrect.

c. 0.25.

d. 0.40.