If sales are $797,000, variable costs are 80% of sales, and operating income is $201,000, what is the contribution margin ratio? a. 20% b. 80% C. 76% d. 24%
If sales are $797,000, variable costs are 80% of sales, and operating income is $201,000, what is the contribution margin ratio? a. 20% b. 80% C. 76% d. 24%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:If sales are $797,000, variable costs are 80% of sales, and operating income is $201,000, what is the contribution margin ratio?
a. 20%
b. 80%
C. 76%
d. 24%
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