If sales are $28,000, variable costs are $8,000, and fixed costs are $4,000, the contribution margin ratio is:(rounded to the nearest number)O a. 57%O b. 29%O c. 14%O d. None of the given answersO e. 71%US PAGENEXT PAGE14:16e to searcha a 40) ENG15-04-2021prt scendDg updeletehome%2496&num+ backspace89.lockV.P8 AThome5 centerDJKpauseNMT shift11Cendaltctrl

Contribution margin is the sales revenue over and above its variable costs.

If sales are $28,000, variable costs are $8,000, and fixed costs are $4,000, the contribution margin ratio is: (rounded to the nearest number) O a. 57% O b. 29% О с. 14% O d. None of the given answers О е. 71%

If sales are $28,000, variable costs are $8,000, and fixed costs are $4,000, the contribution margin ratio is: (rounded to the nearest number) O a. 57% O b. 29% О с. 14% O d. None of the given answers О е. 71%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

If sales are $28,000, variable costs are $8,000, and fixed costs are $4,000, the contribution margin ratio is:
(rounded to the nearest number)
O a. 57%
O b. 29%
O c. 14%
O d. None of the given answers
O e. 71%
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