Dakota Company provides the following information about its single product: Targeted operating income $40,000 Selling price per unit $3.50 Variable cost per unit $1.05 Total fixed costs $90,000 What is the contribution margin ratio

57%

Explanation:

Contribution margin ratio is the ratio of difference between a company's revenue and variable expenses to the revenue of the company. It is usually expressed as a percentage.

This is also the ratio of the contribution margin to sales.

Given that Selling price per unit $3.50 Variable cost per unit $1.05

Contribution margin ratio

= (3.50 - 1.50)/ 3.50

=2/3.5

= 0.57

= 57%

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer; foreign exchange transaction;