14. A retail company determines its selling price by marking up variable costs 60%. In addition, the company uses frequent selling price markdowns to stimulate sales. If the markdowns average 10%, what is the company's contribution margin ratio? * 27.5% 30.6% O 37.5% O 41.7%
14. A retail company determines its selling price by marking up variable costs 60%. In addition, the company uses frequent selling price markdowns to stimulate sales. If the markdowns average 10%, what is the company's contribution margin ratio? * 27.5% 30.6% O 37.5% O 41.7%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:14. A retail company determines its
selling price by marking up variable
costs 60%. In addition, the company
uses frequent selling price markdowns
to stimulate sales. If the markdowns
average 10%, what is the company's
contribution margin ratio? *
27.5%
30.6%
O 37.5%
O 41.7%
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