Gerber Company is planning to sell 200,000 units for $2.00 a unit and will just brea? even at this level of sales. The contribution margin ratio is 25%. What are the company's fixed expenses?

A) $200,000.
B) $300,000.
C) $100,000.
D) $160,000.

Contribution Margin Ratio

The proportion of sales revenue that exceeds variable costs, typically expressed as a percentage, indicating how much contributes to covering fixed costs and generating profits.

Fixed Expenses

Costs that do not vary with the level of production or sales over a short period, such as rent, salaries, and insurance.

Break-Even

The point at which total costs and total revenues are equal, meaning there is no net loss or gain.