Sales amount to $564,000, variable costs are 53% of sales, and fixed cost is $120,000. What is the contribution margin ratio? A. 41% B. 44% C. 39% D. 37% E. 47%

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...
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Sales amount to $564,000, variable costs are
53% of sales, and fixed cost is $120,000. What
is the contribution margin ratio?
A. 41%
B. 44%
C. 39%
D. 37%
E. 47%
Transcribed Image Text:Sales amount to $564,000, variable costs are 53% of sales, and fixed cost is $120,000. What is the contribution margin ratio? A. 41% B. 44% C. 39% D. 37% E. 47%
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