Answered: If a company has a contribution margin…

If a company has a contribution margin ratio of 60%, the company's variable expense ratio is: •100% •60% •Cannot be determined with the given information •40%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3MC: A companys product sells for $150 and has variable costs of $60 associated with the product. What is...

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Question

If a company has a contribution margin ratio of

60%, the company's variable expense ratio is:

•100%

•60%

•Cannot be determined with the given information

•40%

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