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ABC Manufacturing has sales of $3,450,000 with direct materials cost of $425,000, direct labor of $585,000, variable overhead of $155,000, and fixed costs of $425,000. What is ABC's contribution margin rate? a. 72.5% b. 66.23% c. 53.8% d. 78.2%

ABC Manufacturing has sales of $3,450,000 with direct materials cost of $425,000, direct labor of $585,000, variable overhead of $155,000, and fixed costs of $425,000. What is ABC's contribution margin rate? a. 72.5% b. 66.23% c. 53.8% d. 78.2%

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...
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ABC Manufacturing has sales of $3,450,000 with direct materials cost of $425,000, direct labor of $585,000, variable overhead of $155,000, and fixed costs of $425,000. What is ABC's contribution margin rate? a. 72.5% b. 66.23% c. 53.8% d. 78.2%
Transcribed Image Text:ABC Manufacturing has sales of $3,450,000 with direct materials cost of $425,000, direct labor of $585,000, variable overhead of $155,000, and fixed costs of $425,000. What is ABC's contribution margin rate? a. 72.5% b. 66.23% c. 53.8% d. 78.2%
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