Sales amount to $774,000, variable costs are 59% of sales, and fixed cost is $120,000. What is the contribution margin ratio? a. 41% b. 44% c. 39% d. 37%

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4EA: A product has a sales price of $250 and a per-unit contribution margin of $75. What is the...
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What is the contribution margin ratio?

Sales amount to $774,000, variable
costs are 59% of sales, and fixed cost
is $120,000. What is the contribution
margin ratio?
a. 41%
b. 44%
c. 39%
d. 37%
Transcribed Image Text:Sales amount to $774,000, variable costs are 59% of sales, and fixed cost is $120,000. What is the contribution margin ratio? a. 41% b. 44% c. 39% d. 37%
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