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Eastbay Distribution Inc. reports sales amounting to $1,050,000, with variable costs equal to 61% of sales, and fixed costs of $160,000. What is the contribution margin ratio? a) 39% b) 40% c) 41% d) 36%

Eastbay Distribution Inc. reports sales amounting to $1,050,000, with variable costs equal to 61% of sales, and fixed costs of $160,000. What is the contribution margin ratio? a) 39% b) 40% c) 41% d) 36%

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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Eastbay Distribution Inc. reports sales amounting to $1,050,000, with variable costs equal to 61% of sales, and fixed costs of $160,000. What is the contribution margin ratio? a) 39% b) 40% c) 41% d) 36%
Transcribed Image Text:Eastbay Distribution Inc. reports sales amounting to $1,050,000, with variable costs equal to 61% of sales, and fixed costs of $160,000. What is the contribution margin ratio? a) 39% b) 40% c) 41% d) 36%
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