Saturday, July 9, 2011

Slosh Cleaning Corporation services both residential and commercial customers

ECONOMICS

Multiple Choice

Slosh Cleaning Corporation services both residential and commercial customers. Slosh expects the following operating results next year for each type of customer:


Operating Results

Residential

Commercial

Sales


$60,000


$140,000


Contribution margin ratio

50%


30%


Slosh expects to have $18,000 in fixed expenses next year. What would Slosh's total dollar sales have to be next year to generate a profit of $90,000?
A. $270,000
B. $300,000
C. $216,000
D. $250,000

Click here for the SOLUTION

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