If the unit selling price is $500, the unit variable cost is $300, and the total monthly fixed costs are $300,000, then the contribution margin ratio is: a. 30%. b. 40%. c. 50%. d. 60%.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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If the unit selling price is $500, the unit variable cost is $300, and the
total monthly fixed costs are $300,000, then the contribution margin
ratio is:
a. 30%.
b. 40%.
c. 50%.
d. 60%.
Transcribed Image Text:If the unit selling price is $500, the unit variable cost is $300, and the total monthly fixed costs are $300,000, then the contribution margin ratio is: a. 30%. b. 40%. c. 50%. d. 60%.
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