If sales are $525,000, variable costs are 56% of sales, and operating income is $50,000, what is the contribution margin ratio?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 3EA: A product has a sales price of $150 and a per-unit contribution margin of $50. What is the...
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If sales are $525,000, variable costs are 56% of sales,
and operating income is $50,000, what is the
contribution margin ratio?
Transcribed Image Text:If sales are $525,000, variable costs are 56% of sales, and operating income is $50,000, what is the contribution margin ratio?
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